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Patna High Court

M/S Shree Jagdamba Enterprises and CatererversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The Court granted the petitioner liberty to challenge the appellate order under Section 112 of the Bihar GST Act, 2017, and disposed of the writ petition.

Summary

M/S Shree Jagdamba Enterprises filed a writ petition challenging demand orders for the 2023-24 period issued by Bihar tax authorities, alleging they were passed without a personal hearing notice, violating Section 75(4) of the Bihar GST Act and principles of natural justice. The petitioner also contended that no show‑cause notice under Section 73(1) and Rule 142 of the BGST/CGST Rules 2017 was served, breaching procedural requirements. Additionally, the appeal against the demand was rejected by the Additional Commissioner (Appeal) on a limitation ground, which the petitioner claimed violated natural justice and the doctrine of merger. The High Court, per Justice Mohit Kumar Shah, granted the petitioner liberty to challenge the appellate order under Section 112 of the Bihar GST Act, 2017. Consequently, the writ petition was disposed of.

Issues considered

  • Whether demand orders issued without a personal hearing notice violate Section 75(4) of the Bihar GST Act and principles of natural justice.
  • Whether the failure to serve a show‑cause notice under Section 73(1) and Rule 142 of the BGST/CGST Rules 2017 renders the demand orders invalid.
  • Whether the appellate authority's rejection of the appeal on the ground of limitation infringes natural justice and the doctrine of merger, and whether liberty can be granted to challenge the order under Section 112 of the Bihar GST Act.

Legislation cited

Subjects

  • GST
  • show cause notice
  • natural justice
  • writ of certiorari
  • limitation
  • appellate authority
  • Section 112
  • Bihar GST Act

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                              Civil Writ Jurisdiction Case No.19495 of 2025
                 ======================================================
                 M/S Shree Jagdamba Enterprises and Caterer, a Proprietorship firm having
                 GSTIN-10DDWPM4800E1ZR and it’s office at Ward No. 14, Mokama,
                 Patna, Bihar-803302 through its Proprietor Beni Madhav, Gender-Male, aged
                 about 31 years, Son of Sanjay Kumar Singh, Ramcharan Tola, Mokameh,
                 District-Patna, Bihar-803302.

                                                                              ... ... Petitioner/s
                                                        Versus

           1.    The State of Bihar through The Principal Secretary, State Tax, Bihar, Patna
                 having its office at Kar Bhawan, Patna.
           2.    The Principal Secretary Cum Commissioner, Department of State Taxes,
                 Government of Bihar, Patna.
           3.    The Joint Commissioner of State Tax, Barh Circle, Barh, Bihar.
           4.    The Assistant Commissioner of State Tax, Barh Circle, Barh, Bihar.
           5.    The Additional Commissioner of State Tax, Appeal, East Division, Patna,
                 Bihar.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :        Mr. Bijay Kumar Gupta, Advocate
                 For the Respondent/s   :        Government Pleader 7
                 ======================================================
                   CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
                                               and
                               HONOURABLE MR. JUSTICE RAJ KUMAR
                                       ORAL ORDER

                     (Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)

2   08-07-2026                 The present writ petition has been filed seeking the

                   following reliefs:-

                                             “i) For issuing of a writ of certiorari or
                                  any other appropriate writ quashing/ setting aside
                                  the   Order     for     Demand   vide   process     No-02
                                  (Annexure-P4) dated 09.04.2025 for the period 2023-
                                  24 and summary of the Order in the form of DRC-07
Patna High Court CWJC No.19495 of 2025(2) dt.08-07-2026
                                           2/3




                         ZD100425004538T dated 09.04.2025 for the period
                         2023-24 (Annexure-P4A) passed by the Respondent
                         No-4 which were passed in violation of principal of
                         natural justice as demand orders were passed
                         without issuance of notice of personal hearing in
                         violation of section 75(4) of the BGST/CGST Act,
                         2017 which render the entire proceedings of
                         Respondent No.- 4 violative of principles of natural
                         justice and thus liable to be set aside.
                                      ii) For the Show cause Notice under
                         Section 73(1) which was not served on the Petitioner
                         as it was never issued and uploaded on GST portal
                         and issuance of a demand order without properly
                         serving a Show Cause Notice violates the principles
                         of natural justice; is violative of Rule 142 of
                         BGST/CGST Rule 2017 and also violates Instruction
                         No-04 of 2023 dated 23.11.2023 of CBIC.
                                      iii) For issuing a writ of certiorari or any
                         other appropriate writ quashing/ setting aside
                         impugned Order dated 06.10.2025 for the period
                         2023-24 in Appeal Case No. GST/BR-26/25-26,
                         passed by the Appellate Authority (Respondent No.5)
                         U/s 107 of BGST/CGST Act 2017 (Annexure-P-6
                         series) who rejected Appeal of the Petitioner on the
                         ground of limitation in violation of principles of
                         natural justice and thus liable to be set aside. As the
                         Appellate Authority rejected the appeal on the
                         ground of limitation so the doctrine of merger would
                         not be applicable in his case.”

                      2. At the outset, the learned counsel for the petitioner

          seeks liberty on behalf of the petitioner to challenge the
          Patna High Court CWJC No.19495 of 2025(2) dt.08-07-2026
                                                     3/3




                    appellate order dated 06.10.2025 passed by the Additional

                    Commissioner (Appeal) of State Tax, Patna East, Patna by

                    availing the remedy available under Section 112 of Bihar Goods

                    and Services Tax Act, 2017. Liberty, so sought, is granted.

                                3. Accordingly, the present writ petition stands

                    disposed of.



                                            (Mohit Kumar Shah, J)


                                                  (Raj Kumar, J)
GAURAV S./-
U


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