Patna High Court
M/s. Murraya E-Auto Engineering Works (OPC) Private LimitedversusThe State of Bihar
- Decided
- Disposal
- DISPOSED
Holding
The Court directed the respondents to decide the pending refund application under Section 68 of the Bihar Value Added Tax Act, 2005 within two months, without expressing any view on the merits of the petitioner's claim.
Summary
M/s. Murraya E‑Auto Engineering Works (OPC) Pvt Ltd filed a writ petition seeking a mandamus directing the Bihar tax authorities to refund Rs 8,67,426 deposited as entry tax for 2017‑18, which it claims is excess after the entry tax law was repealed by the GST regime. The petitioner, a registered dealer under the Bihar VAT Act, 2005, the Central Sales Tax Act, 1956 and the Bihar Entry Tax Act, 1993, submitted a refund application on 2 September 2025 under Section 68 of the Bihar VAT Act invoking the saving clause. The State’s representative indicated no instruction but said the competent authority would consider any pending refund application. The Court, without examining the merits, ordered the respondents to consider the refund application and pass a decision within two months of receipt of the order. It further directed that if the refund is deemed payable, it should be released with statutory interest within an additional month. The writ petition was consequently disposed of.
Issues considered
- Whether the petitioner is entitled to a refund of entry tax deposited for 2017‑18 after the repeal of the Bihar Entry Tax Act.
- Whether the tax authority is obligated to adjudicate the refund application filed under Section 68 of the Bihar Value Added Tax Act, 2005.
- Whether a writ of mandamus can be issued to compel the tax department to process and refund the claimed amount.
Legislation cited
- Bihar Entry Tax Act, 1993
- Bihar Value Added Tax Act, 2005 — s. 68
- Central Sales Tax Act, 1956
Subjects
- refund
- entry tax
- GST
- mandamus
- Bihar VAT Act
- statutory interest
- repeal
- tax law
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.3137 of 2026
======================================================
M/s. Murraya E-Auto Engineering Works (OPC) Private Limited having its
Office at Bairiya Road, Zero Mile, Ahiyapur, Musahari, Muzaffarpur, Bihar-
842001, through its Director Ajit Kumar Singh (Male), Aged about 53 years,
S/o Shri Ramsagar Singh, Residing at 16, Kesri Nagar, Road No. 16, P.S.
Rajiv Nagar, District- Patna, Bihar, 800024.
... ... Petitioner/s
Versus
1. The State of Bihar through the Principal Secretary-Cum-Commissioner,
Commercial Taxes, Govt. of Bihar, Kar Bhawan, Patna.
2. The Commissioner cum Secretary, Commercial Tax Department, Govt. of
Bihar, Kar Bhawan, Patna.
3. The Joint Commissioner of State Taxes, Muzaffarpur East Circle,
Muzaffarpur, Bihar.
4. The Assistant Commissioner of State Tax, Muzaffarpur, East Circle,
Muzaffarpur, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Amarjeet, Adv.
Mr. Vijay Kumar Singh, Adv.
For the Respondent/s : Mr. Vivek Prasad, GP-7
Ms. Roona, AC to GP-7
======================================================
CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
and
HONOURABLE MR. JUSTICE KUMAR MANISH
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)
2 19-06-2026 Heard learned counsel for the petitioner and learned
GP-7 for the State.
2. This writ application has been preferred seeking the
following reliefs:-
(i) For issuance of a writ in the nature of
mandamus, directing the Respondent No. 3 to
refund a sum of Rs.8,67,426/-, deposited by the
petitioner towards Entry Tax for the period 2017-
18, which has not been refunded despite
Patna High Court CWJC No.3137 of 2026(2) dt.19-06-2026
2/4
submission of a statutory refund application in the
prescribed form;
(ii) For issuance of a writ in the nature of
mandamus, directing the to complete Respondents
assessment/reconciliation under the repealed Bihar
Tax on Entry of Goods into Local Areas for
Consumption, Use or Sale Therein Act, 1993
(hereinafter "Bihar Entry Tax Act") read with the
Bihar Value Added Tax Act, 2005, and to refund the
aforesaid excess amount along with statutory
interest;
(iii) For issuance of any other appropriate
writ(s), order(s) or direction(s) as this Hon'ble
Court may deem fit and proper in the facts and
circumstances of the case.
3. Learned counsel for the petitioner submits that the
petitioner happens to be a duly registered dealer under the Bihar
Value Added Tax Act, 2005, the Central Sales Tax Act, 1956 and
the Tax on Entry of Goods into Local Areas for Consumption,
Use or Sale Therein Act, 1993. It is submitted that from
01.07.2017 the Goods and Services Tax Regime was introduced
as a result whereof the Bihar Entry Tax Act came to be
abolished/repealed. No further entry tax liability could be
assessed or adjusted and the excess amount deposited by the
petitioner remained unjustly retained in the Government
Exchequer. It is his submission that there is no outstanding tax
demand against the petitioner.
4. Learned counsel for the petitioner has drawn our
attention towards the refund application dated 02.09.2025
Patna High Court CWJC No.3137 of 2026(2) dt.19-06-2026
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(Annexure- ‘P/3’) submitted under Section 68 of the Bihar
Value Added Tax Act, 2005 by virtue of the saving clause. It is
submitted that the petitioner would be entitled for the refund.
5. Learned counsel submits that the Competent
Authority has yet not taken any decision on Annexure- ‘P/3’ to
the writ application.
6. Mr. Vivek Prasad, learned G.P.-7 for the State
submits that presently, he has no instruction in the matter but in
case, any refund application as is being claimed by the
petitioner, is pending with the Department, the Competent
Authority in the Department shall definitely look into the same
and taken an appropriate decision in accordance with law.
7. In view of the stand taken on behalf of the State by
learned G.P.-7, we are disposing of this writ application with a
direction to the respondents to consider the refund application
(Annexure- ‘P/3’) and take an appropriate decision thereon
within a period of two months from the date of
receipt/production of the copy of this order. We make it clear
that this Court has not gone into the merit of the contentions and
it will be open for the respondents to take an appropriate view as
they think just and proper in accordance with law.
8. If the petitioner is found entitled for refund, the
Patna High Court CWJC No.3137 of 2026(2) dt.19-06-2026
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same will be made available to the petitioner together with
statutory interest within a further period of one month.
9. This writ application stands disposed of
accordingly.
(Rajeev Ranjan Prasad, J)
( Kumar Manish, J)
Abhishek/-
lekhi/-
U
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