Patna High Court
M/S Kishan Cement StoresversusThe State of Bihar
- Decided
- Disposal
- DISMISSED
Holding
The writ petition is dismissed as the petitioner failed to exhaust the statutory appeal remedy and no violation of natural‑justice or jurisdictional error is shown.
Summary
M/s Kishan Cement Stores filed a writ petition seeking to quash a summary show‑cause notice and penalty imposed under the CGST/BGST Act, alleging denial of a hearing in violation of Section 129(4) and claiming the goods were covered by a valid tax invoice and an expired e‑way bill. The State produced a release order (Form GST MOV‑05) dated 13‑10‑2025 showing that the petitioner had paid the tax and penalty and that the goods were released. The Court held that under Section 129(5) the payment of the penalty concluded the proceedings, and that the petitioner had failed to file an appeal within the three‑month period prescribed by Section 107. Since no breach of natural‑justice principles or jurisdictional error was demonstrated, the writ was deemed premature and inadmissible. Consequently, the petition was dismissed.
Issues considered
- Whether the summary show‑cause notice and penalty order can be set aside for violation of natural‑justice principles under Section 129(4) of the CGST/BGST Act.
- Whether the release order and payment of penalty on 13‑10‑2025 concluded the proceedings under Section 129(5) of the CGST/BGST Act.
- Whether the petitioner is barred from filing a writ because he did not prefer an appeal within the three‑month period prescribed by Section 107 of the CGST/BGST Act.
Legislation cited
- Bihar Goods and Services Tax Act, 2017 — s. 107, 129(4), 129(5)
- Central Goods and Services Tax Act, 2017 — s. 107, 129(4), 129(5)
Subjects
- GST
- penalty
- show cause notice
- natural justice
- writ of certiorari
- appeal
- Section 129
- Section 107
- release order
- tax compliance
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.1982 of 2026
======================================================
M/S Kishan Cement Stores having GSTIN- 10BNCPK1349A1ZW
proprietary concern having its office at - village- Sikandra, Police Station -
Sikandra, District- Jamui, Bihar, 811315 through its proprietor Ranjit Kumar,
Gender- Male, aged about 51 years, Son of Shri Ayodhya Mahto, Resident of
village- Sikandra, Post- Sikandara, Police Station- Sikandra, District- Jamui,
Bihar- 811315.
... ... Petitioner
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, Jamui Circle, Jamui.
4. The Deputy Commissioner of State Tax, Jamui Circle, Jamui, Bihar.
... ... Respondents
======================================================
Appearance :
For the Petitioner : Mr. Manish Kumar, Advocate
For the State : Mr. Vikash Kumar, Standing Counsel (11)
======================================================
CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
and
HONOURABLE JUSTICE SMT. SONI SHRIVASTAVA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)
2 11-05-2026 Heard learned counsel for the petitioner and learned
SC-11 for the State.
2. The petitioner in this writ application is seeking the
following reliefs:-
“i) For issuing of a writ of certiorari or any
other appropriate writ quashing/ setting aside
the Summary of Show cause Notice for Penalty
in the form of DRC-01 vide Reference No-
ZD101025012053I dated 13.10.2025 and Show
Cause Notice in FORM GST MOV-07 vide
Patna High Court CWJC No.1982 of 2026(2) dt.11-05-2026
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Process No: Nil dated 13.10.2025 (as contained
in Annexure-P1D and Annexure-P1E) which
was issued by the Respondent No. -4 without
affording any opportunity of hearing in violation
of S 129(4) 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 issuing a writ of certiorari or any other
appropriate writ quashing/ setting aside the
Summary of Show cause Notice for Penalty in
the form of DRC-01 vide Reference No-
ZD101025012053I dated 13.10.2025 and Show
Cause Notice in FORM GST MOV-07 vide
Process No: Nil dated 13.10.2025 (as contained
in Annexure-P1D and Annexure-P1E) issued by
the Respondent No-4 were not lawful as goods
detained by him was backed by valid tax paid
invoice and E-way bill which had just expired
during transportation due to some technical snag
in the vehicle and there was no intention to
evade tax by the petitioner and e way bill had
just expired and this e way bill could not be
extended in time as the vehicle was on the way
to destination and not taking notice of the reply
submitted by the petitioner to the show cause
notice renders the entire proceedings of
Respondent No-4 get invalid and thus liable to
be set aside.
iii) For issuance of appropriate direction or any
other appropriate writ to the Respondents to
refund the penalty amount of Rs.2,00,090.00/-
paid under CGST and BGST Act, 2017 along
Patna High Court CWJC No.1982 of 2026(2) dt.11-05-2026
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with interest which was deposited under
duress as goods in transportation was urgently
needed for business purpose and goods in
transportation was covered by tax invoice and E
Way Bill.
iv) For granting any other relief (s) to which the
petitioner is otherwise found entitled to in
accordance with law.”
3. It is the case of the petitioner that he was compelled
to pay the penalty amount of Rs.2,00,090/- under the Central
Goods and Services Tax/Bihar Goods and Services Tax Act,
2017 (hereinafter referred to as the ‘CGST/BGST Act, 2017’)
along with interest deposited under duress as the goods in
transportation was urgently needed for business purpose. This
Court has found that while making that payment, the petitioner
had not raised any protest.
4. Learned SC-11 representing the State has drawn the
attention of this Court towards Form GST MOV-05 dated
13.10.2025 (Annexure ‘P3A’) which is a release order.
Annexure ‘P3A’ dated 13.10.2025 reads as under:-
“FORM GST MOV-05
OFFICE OF DEPUTY COMMISSIONER OF STATE TAX
JURISDICTION: JAMUI, STATE/UT: BIHAR
ADDRESS: -NA-
RELEASE ORDER
No.: ZD1010250120695 Date: 13/10/2025
Patna High Court CWJC No.1982 of 2026(2) dt.11-05-2026
4/6
Case ID: AD1010250022254
To,
RANJIT KUMAR
10BNCPK1349A1ZW
0, sikandra, sikandra, Jamui, Bihar, 811315
Ref: FORM GST MOV-02 No: ZD101025011993X dated:
13/10/2025
The goods conveyance bearing No. JH15AC7947 carrying
goods was inspected by me SUNIL KUMAR, Deputy
Commissioner of State Tax on 11/10/2025 and after
inspection, an order of detention was issued in FORM
GST MOV-06 on 13/10/2025 and a notice in FORM GST
MOV-07 was served on the Person-in-Charge of the
conveyance on 13/10/2025. The owner or Person-in-
Charge of the conveyance has-
a. come forward and made the payment of tax and penalty
as proposed and proceedings is drawn in this regard.
In view of the above, the goods and conveyance are hereby
released on 13/10/2025 at 19:27 HRS in good condition.
Signature
Name: SUNIL KUMAR
Designation: Deputy Commissioner of
State Tax
Enclosure/s:
MOV-05
ACKNOWLEDGEMENT:
I hereby duly declare that I have received a copy of the
above order.
Signature of the Owner/Person-in-Charge”
5. On the strength of the aforesaid release order
(Annexure ‘P3A’), learned SC-11 submits that by virtue of sub-
Patna High Court CWJC No.1982 of 2026(2) dt.11-05-2026
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section (5) of Section 129 of the CGST Act, 2017, on payment
of the amount, all proceedings in respect of the notice specified
in sub-section (3) shall be deemed to be concluded. In his
submissions, in this case the proceeding stood concluded on
13.10.2025. Almost after four months from the date of the
conclusion of the proceeding, the petitioner has filed this writ
application. It is submitted that if at all the petitioner was
aggrieved by the order imposing penalty, he could have
preferred an appeal within the prescribed period of three months
but having failed to do so, he has chosen to file this writ
application. It is his submission that such writ applications are
required to be discouraged.
6. Having regard to the entire facts and circumstances
of the case, we are of the considered opinion that the writ
application as framed in the facts of the present case need not be
entertained. The order of release (Annexure ‘P3A’) is dated
13.10.2025. A reading of the same would show that on receipt of
a notice in Form GST MoV-07, the Person-In-Charge of the
conveyance on 13.10.2025 came forward and made payment of
the tax and penalty as proposed. In view of the said readiness of
the Person-In-Charge of the conveyance to deposit the tax and
penalty amount, the competent authority accepted the same and
Patna High Court CWJC No.1982 of 2026(2) dt.11-05-2026
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directed for release of the goods and conveyance. Learned
counsel for the petitioner is unable to demonstrate from the
records that at the relevant point of time, the petitioner had
made any protest. The order of the competent authority is an
appealable order under Section 107 of the CGST/BGST Act,
2017. The appeal could have been preferred within a period of
three months but the petitioner chose not to file any appeal
within the prescribed period.
7. In such circumstance, this Court is of the
considered opinion that filing of the writ application directly
before this Court without availing the statutory remedy of
appeal is required to be discouraged, more so where the
petitioner is unable to demonstrate violation of principles of
natural justice or any jurisdictional error.
8. In result, we find no merit in the writ application. It
is dismissed accordingly.
(Rajeev Ranjan Prasad, J)
(Soni Shrivastava, J)
lekhi/-
U
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