Patna High Court
Systematic and advance construction Private LimitedversusThe State of Bihar
- Decided
- Disposal
- DISPOSED
Holding
The Court held that the petitioner is entitled to file an appeal under Section 112 of the GST Act and that, upon payment of the statutory pre‑deposit, the recovery proceedings are stayed pending disposal of that appeal.
Summary
Systematic and Advance Construction Private Ltd filed a writ petition in the Patna High Court seeking to restrain the State of Bihar tax authorities from executing an order dated 01‑02‑2025 passed under section 74(9) of the Central Goods and Services Tax Act, 2017, and from issuing further reminders demanding interest and penalty. The petitioner argued that the enforcement was illegal, unreasonable and arbitrary because there was no functional GST Tribunal in Bihar, depriving it of the statutory remedy of appeal under section 112 of the GST Act. The Court examined whether the petitioner could invoke the Section 112 appeal despite the absence of the Tribunal and whether the recovery proceedings should be stayed upon payment of the pre‑deposit required under Section 112(8). It held that the petitioner is entitled to file an appeal under Section 112 and that, subject to the pre‑deposit, the recovery proceedings are deemed stayed under Section 112(9). Consequently, the Court granted liberty to the petitioner to challenge the appellate order dated 22‑07‑2025 and disposed of the writ petition. The order effectively protects the petitioner from coercive recovery actions until the appeal is heard.
Issues considered
- Whether the petitioner can invoke the remedy of appeal under Section 112 of the GST Act when the GST Tribunal is not functional in Bihar.
- Whether the recovery proceedings for tax, interest and penalty can be stayed pending the filing of the Section 112 appeal.
- Whether the reminders issued by the tax authorities can be quashed as arbitrary and illegal.
- Whether execution of the order passed under Section 74(9) of the GST Act can be restrained.
Legislation cited
- Central Goods and Services Tax Act, 2017 — s. 112, 74, 79
Subjects
- GST
- Section 112 appeal
- tax recovery
- stay of execution
- penalty and interest
- GST Tribunal
- civil writ jurisdiction
- tax assessment
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.4911 of 2026
======================================================
Systematic and advance construction Private Limited having its head office at
Triveni Niwas, flat number 101, RK Avenue road, Rajendra Nagar, Patna
-800016 through its authorised representative namely Ram Shankar male aged
about 38 years son of Damodar Prasad Gupta resident of Krishna Bhawan,
behind JTC Fraser Road, Patna, Bihar-800001.
... ... Petitioner/s
Versus
1. The State of Bihar Through The Commissioner, Department Of State Taxes,
New Secretariat, Bailey Road, Patna.
2. The Commissioner, Department of State Taxes, New Secretariat, Bailey
Road, Patna.
3. The Additional Commissioner of State Taxes (Appeals), Patna East Division,
Patna.
4. The Joint Commissioner of State Taxes, Kadam Kuan Circle, Department Of
State Taxes, Patna.
5. The Assistant Commissioner of State Taxes, Kadam Kuan Circle,
Department Of State Taxes, Patna.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Gautam Kejariwal, Adv.
For the State : Ms. Roona, AC to GP-7
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
3 15-04-2026 The present writ petition has been filed seeking the
following reliefs:-
“1(a). For issuance of a writ or order or a direction
restraining the Respondents especially the respondent
Patna High Court CWJC No.4911 of 2026(3) dt.15-04-2026
2/4
number 5 from proceeding to execute and enforce the
order dated 01.02.2025, passed under section 74 (9) and
the summary of order issued in form GST DRC-07 dated
01.02.2025 with respect to financial year 2017-2018
(July 2017 to March 2018), passed under section 74 of
the Central Goods and Services Tax Act, 2017
(hereinafter referred to as “the Central Act, 2017” for
short) affirmed in appeal vide order dated 22.07.2025 by
the Additional Commissioner of State taxes (Appeals),
Patna East Division, Patna;
(b) For further issuance of a writ or order or a direction
in the writ of certiorari for quashing of the reminders
dated 09.02.2026, 24.02.2026 and 05.03.2026, issued by
the respondent number 5 thereby, the petitioner has been
called upon to make payment of the amount determined
in terms of the impugned order dated 01.02.2025 later
affirmed in appeal vide order dated 22.07.2025, which
absolutely illegal, unreasonable and arbitrary in view of
non-availability of the remedy of further appeal under
Section 112 of the Central Act, 2017 in the present due to
the absence of learned GST Tribunal in the Tstate of
Bihar.
(c) For further holding and a declaration that the
respondents especially the respondent number 5 may not
be permitted to enforce the demand of tax, interest and
penalty determined in terms of the order dated
01.02.2025 later affirmed in appeal vide order dated
22.07.2025 in absence of the statutory remedy of further
appeal available to the petitioner in terms of Section 112
of the Central Act, 2017 and therefore the impugned
reminders issued by the respondent number 5 are wholly
arbitrary, unreasonable and fit to be quashed and set
aside by this honourable court;
d) For further restraining the respondents from taking
any coercive action against the petitioner in terms of
Section 79 of the Central Act, 2017 for recovery of the
demand in terms of the order dated 01.02.2025 later
affirmed in appeal vide order dated 22.07.2025 till the
Patna High Court CWJC No.4911 of 2026(3) dt.15-04-2026
3/4
petitioner avails statutory remedy of appeal under section
112 of the Central Act, 2017 upon Constitution and
functioning of learned GST Tribunal, Bihar.”
2. At the outset, the learned counsel for the petitioner seeks
liberty on behalf of the petitioner to challenge the appellate
order dated 22.7.2025, passed by the learned Additional
Collector (Appeal)-State Tax, Patna East Division, Patna in
Appeal Case No. GST/PK-07/2025-26 by availing the remedy
provided for under Section 112 of the Bihar Goods and Services
Act, 2017. Liberty, so sought, is granted.
3. At this juncture, the learned counsel for the petitioner
submits that the petitioner be protected, inasmuch as he has
already deposited the original tax liability to the tune of Rs.
63,50,592/- against each head, however the authorities are
demanding interest / penalty over the delayed payment of the
said amount.
4. We find that the amount of pre-deposit for the purposes of
filing an appeal under Section 112 of the Central/ Bihar Goods
and Services Tax Act, 2017 is provided for under Section 112
(8) of the said Act, 2017, hence subject to the said pre-deposit,
the recovery proceedings for the balance amount shall be
deemed to be stayed till the disposal of the appeal, as is
provided for under Section 112 (9) of the Central/ Bihar Goods
Patna High Court CWJC No.4911 of 2026(3) dt.15-04-2026
4/4
and Services Tax Act, 2017.
5. Accordingly, the present writ petition stands disposed off.
(Mohit Kumar Shah, J)
( Arun Kumar Jha, J)
Ajay/-
U
Checking your session…