Patna High Court
Tushar Construction CompanyversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The Court held that the appropriate remedy to assail the appellate authority's order is under section 112 of the Bihar Goods and Taxes Act, 2017, and therefore disposed of the writ petition.
Summary
Tushar Construction Company filed a writ petition in the Patna High Court challenging a show‑cause notice and demand of Rs 60,39,844 for alleged short payment of taxes for FY 2019‑20, as well as a rectification order and an appellate authority order issued under the Bihar Goods and Taxes Act, 2017. The petition sought to set aside the notice, the demand order under section 73(9), the rectification order under section 161, and the appellate order, claiming they were legally unsustainable. The Court observed that the proper remedy to contest the appellate order is under section 112 of the Bihar Goods and Taxes Act, 2017. Accordingly, the Court granted liberty to the petitioner to pursue that statutory remedy. The petition was thereafter disposed of by the Court.
Issues considered
- Whether the show‑cause notice and demand under section 73(9) of the Bihar Goods and Taxes Act, 2017 can be set aside by a writ.
- Whether the rectification order dated 17‑04‑2025 under section 161 of the Act is valid.
- Whether the order of the Additional Commissioner of State Tax (Appeal) can be challenged through a writ petition.
- Whether the appropriate remedy is to invoke section 112 of the Bihar Goods and Taxes Act, 2017.
Subjects
- GST
- tax demand
- show cause notice
- writ petition
- section 112
- rectification order
- appellate authority
- Patna High Court
- Bihar
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.2602 of 2026
======================================================
Tushar Construction Company a Partnership firm having GSTIN-
10AALFT1435F1ZM and its office at Dharora Chok, Near Raushan Dharm
Kanta, Benipur Road, Dharora, Darbhanga, 846004 through its partner Sanjay
Kumar Singh, Gender- Male, aged about 52 years, Son of Nageshwar Singh,
Resident of Village Narma Darbhanga Bihar 847405 P.O. Narbhar Patti, P.S.
Alinagar.
... ... Petitioner/s
Versus
1. The Union of India through the Secretary, Ministry of Finance Department
of Revenue, having its office at Room No. 46, North Block, P.O. and P.S.
North Block, New Delhi- 110001.
2. The State of Bihar through The Principal Secretary, State Tax, Bihar, Patna
having its office at Kar Bhawan, Patna.
3. The Principal Secretary cum Commissioner, Department of State Taxes,
Government of Bihar, Patna.
4. The Additional Commissioner of State Tax (Appeal), Darbhanga Division
Darbhanga, Bihar.
5. Joint Commissioner of State Tax, Darbhanga, Circle- 1, Darbhanga Bihar.
6. Assistant Commissioner of State Tax, Darbhanga, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Shashwat Pratyush, Advocate
For the Respondent/s : Mr.Amit Pandey, Sr. SC CGST/CX
Mr. Rakesh Kumar, Advocate
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 15-04-2026 The present writ petition has been filed by the petitioner
seeking the following reliefs:-
“(i) For Issuance of Writ in the nature of
Writ/order/direction for setting aside Show Cause
Notice and Summary of Show Cause Notice in Form
DRC-01 vide reference no. ZD1010230064467 dated
09-10-2023 and Summary to Show Cause Notice
dated 09-10-2023, whereby and whereunder the
Assistant Commissioner of State Tax has issued show
cause notice for FY 2019-2020 and raised demand of
Rs 60,39,844/-for short payment of taxes.
ii) For Issuance of an appropriate writ/order/
direction for setting aside the order for demand dated
Patna High Court CWJC No.2602 of 2026(2) dt.15-04-2026
2/2
27/11/2023 u/s 73 (9) of BGST/CGST Act 2017 and
summary of the order in the Form DRC-07 vide
Reference No- ZD101123026016C dated 27/11/2023
and confirmed the demand of Rs 60,39,844/- for
short payment of taxes.
iii) For Issuance of an appropriate writ/ order/
direction for setting aside the rectification order
dated 17.04.2025 u/s 161 of BGST/CGST 2017.
iv) To issue a Writ of Certiorari and quash the order
of the Appellate Authority bearing Appeal No.
AD100725004248H dated 05.08.2025 passed by
Respondent No. 4, for being legally unsustainable,
having been passed without considering the merit of
the case, and leaving the Petitioner with no alternate
statutory remedy.”
2. At the outset, realising the fact that the appropriate
remedy for assailing the order dated 05.08.2025 passed by the
Ld. Additional Commissioner of State Tax (Appeal), Darbhanga
Division, Darbhanga in Appeal No. AD100725004248H is
availing the remedy provided for under Section 112 of the Bihar
Goods and Taxes Act, 2017, the Ld. Counsel for the petitioner
seeks liberty on behalf of the petitioner to avail the said remedy.
Liberty, so sought, is granted.
3. The petition stands disposed of.
(Mohit Kumar Shah, J)
(Arun Kumar Jha, J)
S.Sb/-
U
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