Patna High Court
Shri Nishant KumarversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The petition was dismissed and the writ petition was disposed of.
Summary
The petitioners, Nishant Kumar and Rajnandan Sah, challenged penalties of Rs 2,23,66,029 imposed by the Joint Commissioner (A.E.) under the GST regime, alleging that a fictitious firm, M/s Nishant Enterprises, was fraudulently registered using their identity documents. They sought quashing of the penalty orders and show‑cause notices, mandamus directing a fair investigation to identify the real perpetrators, and declarations that they were not liable for the alleged fraudulent input tax credit. The Court, after hearing arguments, granted the petitioners liberty to pursue alternative remedies available under law. No substantive examination of the merits of the penalties or liability was made. Consequently, the writ petition was disposed of without granting the reliefs sought.
Issues considered
- Whether the penalties imposed by the GST authorities on the petitioners are legally valid.
- Whether the petitioners can be held liable for fraudulent input tax credit arising from a fictitious firm.
- Whether the authorities are obligated to conduct a proper, fair, and independent investigation into the alleged fraud.
- Whether the petitioners are entitled to quash the show‑cause notices and related orders and to obtain mandamus directing restraint of coercive steps.
Subjects
- GST
- penalties
- fraudulent registration
- input tax credit
- writ petition
- certiorari
- mandamus
- investigation
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.4128 of 2026
======================================================
1. Shri Nishant Kumar Son of Shri Rajnandan Sah, resident of Vill- Raksa,
Purvi Tola, Roksa Raksha, Kanti, Muzaffarpur, Bihar-843109.
2. Shri Rajnandan Sah, Son of Sahdeo Sah, resident of Vill- Raksa, Purvi Tola,
Roksa Raksha, Kanti, Muzaffarpur, Bihar-843109.
... ... Petitioner/s
Versus
1. The Union of India through the Secretary, Ministry of Finance, Department
of Revenue, Government of India, New Delhi.
2. The Commissioner, CGST and Central Excise, Patna-II, 3rd, 4th and 5th
Floor, CTTC Building, Sanchar Parisar, Budhh Marg, Patna-800001.
3. The Joint Commissioner (A.E.), CGST and CX, Patna- II.
4. The Superintendent (Adjudication), CGST and CX, Patna-II.
5. The Superintendent, CGST and C. EX Range, Muzaffarpur, East, Bihar.
6. The State of Bihar through the Principal Secretary, Department of State
Taxes, Government of Bihar, Patna.
7. The Assistant Commissioner, State GST, Muzaffarpur, West Circle. 1, Bihar.
8. The Deputy Commissioner, State GST, Muzaffarpur, West, Circle, Bihar.
9. The Superintendent of Police, E.O.U. /Cyber Crime and Security Unit
(CCSU), Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Rajat Kumar Tiwary, Advocate
Mrs. Deepika Sharma, Advocate
For the State : Mr. Vivek Prasad, GP-7
For the Respondent/s : Mr. Anshuman Singh, Sr. SC, CGST & CX
For the E.O.U. : Mr. Vijay Anand, 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 08-04-2026 The present writ petition has been filed by the
petitioners seeking the following reliefs:-
“1.i) To issue a writ/order/ direction in
the nature of Certiorari for quashing
Patna High Court CWJC No.4128 of 2026(2) dt.08-04-2026
2/3
and setting aside the impugned Orders
all dated 28.11.2025 passed by the
Joint Commissioner (A.E.), CGST & CX,
Patna-II, whereby penalties amounting
to Rs. 2,23,66,029/- (IGST) (Two Crores
Twenty Three Lakhs Sixty Six
Thousand and Twenty Nine Rupees)
and other consequential penalties
have been imposed upon the
Petitioners; (Annexure-P/11, P/11A &
P/11B).
ii) To issue a writ/order/ direction in the
nature of Certiorari for quashing the
Summary of Show Cause Notice dated
31.07.2025, the notices dated
01.08.2025, and all consequential
proceedings arising therefrom;
(Annexure-P/6 & P/7, P/7A & P/7B).
iii) To issue a writ/ order/ direction in
the nature of Mandamus for directing
the Respondent authorities to conduct
a proper, fair and independent
investigation to identify the actual
persons who fraudulently obtained
GST registration and operated the said
fictitious entity, including tracing the
mobile number, email ID. bank account
and recipient firms involved,
iv) To issue a writ order direction in the
nature of mandamus for restraining
the Respondents from taking any
coercive steps against the Petitioners
pursuant to the impugned orders and
proceedings:
v) To hold and declare that the
Petitioners cannot be held liable for
any alleged fraudulent Input Tax Credit
(ITC) arising out of the fictitious firm
M/s Nishant Enterprises (GSTIN:
10HGDPK9943QIZR), which was
fraudulently registered through misuse
Patna High Court CWJC No.4128 of 2026(2) dt.08-04-2026
3/3
of identity documents.
vi) To hold and declare that the
Petitioners have neither established,
operated nor carried on any business
in the name and style of M/s Nishant
Enterprises (GSTIN:
10HGDPK9943QIZR);
vii) To hold and declare that the
Petitioners cannot be treated as
proprietors, operators or beneficiaries
of the alleged fictitious firm M/s
Nishant Enterprises, in absence of any
evidence showing actual business
activity, operation of bank accounts,
issuance of invoices, or receipt of
consideration by them.”
2. After some arguments, the Ld. Counsel
for the petitioners seeks liberty on behalf of the
petitioners to avail such alternative remedies as are otherwise
available under the law. Liberty, so sought, is
granted.
3. Accordingly, the present writ petition stands
disposed of.
(Mohit Kumar Shah, J)
(Arun Kumar Jha, J)
S.Sb/-
U
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