Rounak Int UdyogversusState of Bihar

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                               Civil Writ Jurisdiction Case No.7636 of 2025
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                 Rounak Int Udyog a proprietorship concern having its office at Rampur,
                 Basopatti, Madhubani, Bihar-847225 through its proprietor Shambhu Singh
                 (Male, aged about 40 years) son of Shri Shyam Nandan Singh, resident of H.
                 No. 123, Ward No. 14, Pachhwari Tola, Near School, Chatauni, Madhubani,
                 Bihar-847225.

                                                                          ... ... Petitioner/s
                                                    Versus
           1.    State of Bihar through the Commissioner of State Tax, Bihar, Patna having
                 its office at Vikas Bhawan, Patna-800001.
           2.    Asst. Commissioner of State Tax, Madhubani, Darbhanga, Bihar.

                                                           ... ... Respondent/s
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                 Appearance :
                 For the Petitioner/s   :      Mr. D.V.Pathy, Sr. Adv.
                                               Mr.Sadashiv Tiwari, Adv.
                                               Ms. Shivani Dewalla, Adv.
                 For the Respondent/s   :      Mr.Standing Counsel (11)
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                 CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
                         and
                         HONOURABLE MR. JUSTICE ARUN KUMAR JHA
                                       ORAL ORDER

                 (Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)

5   15-04-2026              The present writ petition has been filed seeking the

                   following reliefs:-

                            “1(i). The order dated 06.12.2023 (as contained in
                            Annexure -P3 series) passed by the respondent no. 2 for
                            the Tax Period 2018 -19 under Section 73 of the Bihar
                            Goods and Services Tax Act, 2017 (hereinafter called the
                            Act) merely on the basis of estimation of sale on the
                            basis of purchase of coal without taking notice of the tax
                            invoice and the corresponding purchases shown in the
                            GST returns in absence of any statutory provision
                            enabling such estimate on mere guesswork in absence of
                            a supply of goods being in contravention of section 7 and
                            9 of the Act that too without issue of notice under Section
                            75 (4) of the Act before passing an adverse order and
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                   also in view the content of the show cause notice, the
                   subsequent notice and the order being the same without
                   consideration of the written explanation/submission and
                   also without application of judicial mind and also being
                   counter to the settled principles of natural justice is
                   wholly illegal and without jurisdiction?
                   (ii). the summary of the order in Form GST DRC - 07 (as
                   contained in Annexure -P3 series) quantifying the
                   demand of tax, interest and penalty for the Tax Period
                   2018-19 be set aside and quashed.”

          2.      At the outset, the learned counsel for the parties have

          relied upon a judgment dated 30.08.2025, passed in the case of

          Rounak Int Udyog vs. the State of Bihar (CWJC No.7580 of

          2025),     the     operative      portion      whereof   is   reproduced

          hereinbelow:-

                   “2. Perusal of the records, it is evident that Respondents
                   before levying tax, interest, penalty insofar as
                   consumption of coal to produce bricks, no yardstick has
                   been taken note of to the extent what would be the
                   quantum of coal read with the production of bricks so as
                   to draw inference that petitioner had manipulated while
                   generating Invoice read with e-Way bill. For example for
                   production of one ton of bricks, the quantity of coal
                   required typically ranges from 100 to 250 kilograms,
                   proportionately production of bricks and purchase of
                   coal are to be read with relevant papers. This exercise
                   has not been under taken by the Respondents. In the light
                   of these facts and circumstances, the petitioner has made
                   out a case so as to interfere with the impugned decision
                   of the Respondent. Accordingly, it is set aside.
                   3.    Respondents are hereby directed to take out fresh
                   necessary steps strictly in accordance with the technical
                   issue and also providing ample opportunity of hearing to
                   the petitioner. The above exercise shall be completed
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                  within a period of six months from the date of receipt of
                  this order. Petitioner shall cooperate with the concerned
                  official Respondents.”

          3. The learned counsel for the respondent-State submits that in

          view of the aforesaid judgment passed in the case of Rounka

          Int Udyog (supra), he has got no objection in case the matter is

          remanded back to the appropriate authority.

          4. Having regards to the facts and circumstances of the case, the

          impugned ex-parte Demand Order bearing Reference No.

          ZD101223005966S dated 6.12.2023 along with the summary

          order in form GST DRC-07 dated 6.12.2023 for the F.Y.-2018-

          19 (Annexure P-3 series), issued by the Assistant Commissioner

          of State Tax, Madhubani:Darbhanga:Bihar are quashed. The

          respondents are hereby directed to undertake fresh steps strictly

          in accordance with the provisions contained under the Bihar

          Goods and Services Tax Act, 2017 and after providing an

          adequate opportunity of hearing to the petitioner, the final order

          shall be passed. Such exercise shall be completed within a

          period of six months from the date of receipt/production of a

          copy of this order.

          5. It is needless to state that in case the petitioner does not co-

          operate with the concerned officials, the respondents shall be

          free to proceed ex parte.
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                   6. The writ petition stands allowed.


                                          (Mohit Kumar Shah, J)


                                            ( Arun Kumar Jha, J)

Ajay/-

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