Patna High Court
Morlatis Engineering and Construction Private LimitedversusUnion of India
- Decided
- Disposal
- DISMISSED
Holding
The court held that the summons issued under Section 70 of the Central/Bihar GST Act are valid and cannot be interfered with, leading to dismissal of the writ.
Summary
Morlatis Engineering and Construction Pvt. Ltd. filed a writ petition seeking to quash multiple summons issued by various GST intelligence and tax authorities under Section 70 of the Central/Bihar Goods and Services Tax Act, 2017, alleging they were violative of statutory provisions and a circular of the Central Board of Indirect Taxes. The petitioner also prayed for a mandamus directing the authorities to stay any recovery of disputed tax demands pending determination. The High Court examined the summons and held that they were issued by a proper officer exercising powers conferred by Section 70, analogous to powers of a civil court, and found no merit in interfering with the ongoing inquiry. Consequently, the court dismissed the writ application, ordering the petitioner to pay costs.
Issues considered
- Whether the multiple summons issued under Section 70 of the GST Act can be quashed by a writ of certiorari.
- Whether the issuance of such summons violates Section 6(2) of the GST Act or any circular of the Central Board of Indirect Taxes.
- Whether a mandamus can be issued to stay the recovery of disputed tax demands pending adjudication.
Legislation cited
- Central Goods and Services Tax Act, 2017 — s. 6(2), 70, 74(1), 74(5)
Subjects
- GST
- Section 70 summons
- certiorari
- mandamus
- input tax credit
- tax assessment
- civil writ jurisdiction
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.809 of 2026
======================================================
Morlatis Engineering and Construction Private Limited a company registered
under Companies Act, 1956 having its office at Tola Kesho Narenpur, Morwa,
Samastipur, Bihar 848504 through its authorised signatory Shri. Satyam
Kumar (Male, aged about 26 Years) son of Shri. Vidya Nand Choudhary,
resident of Village Nagargama, Ward No. -5, Nagargama, Samastipur, Bihar -
848114.
... ... Petitioner/s
Versus
1. Union of India through the Directorate General of GST Intelligence, Merut
Zonal Unit, Meerut, Uttar Pradesh.
2. Directorate General of GST Intelligence, Patna Zonal Unit, Patna having its
office at Cybotec Campus, Patliputra Colony, Patna.
3. Senior Intelligence Officer, Commissioner CGST and Central Excise, Patna
II (Anti Evasion) having its office at Sanchar Parisad, BSNL Bhawan, Patna.
4. State of Bihar through Commissioner of State Tax, Bihar, Patna having its
office at Vikas Bhawan, Patna.
5. Superintendent, CGST and Central Excise Range, Samastipur.
6. Asst. Commissioner, CGST and Central Excise Division, Darbhanga
7. Dy. Commissioner of State Tax, Samastipur, Darbhanga, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Sadashiv Tiwari, Advocate
For the State : Mr. Vikas Kumar, SC-11
Mr. Sriram Krishna, Sr. SC for CGST
Mr. Prabhat Kumar Singh, Advocate
Mr. Amarjeet, Advocate
======================================================
CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
and
HONOURABLE JUSTICE SMT. SONI SHRIVASTAVA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)
2 23-04-2026 Learned counsel for the petitioner prays for
adjournment. We refused to grant adjournment as prima facie it
appears that it will only be a wastage of time of the Court.
2. Heard learned counsel for the petitioner and learned
counsel for the CGST.
3. The petitioner in the present writ application is
Patna High Court CWJC No.809 of 2026(2) dt.23-04-2026
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seeking the following reliefs:-
“(i) For issue of a writ in the nature of certiorari or
any other appropriate writ(s) or order(s) to quash
multiple summons (as contained in Annexure-18, 20
series, 21, 22, 24 series and 26) issued by the
respondent no. 2 to 6 in the same subject matter
being in contravention to the statutory provisions as
contained in section 6(2) of the Central/Bihar Goods
and Services Tax Act, 2017 (hereinafter called the
Act) and also the circular issued by the Central Board
of Indirect Taxes, New Delhi.
(ii) For issue of a writ of mandamus or any other
appropriate writ(s) or orders to direct the respondents
to stay off their hands for recovery of disputed
demand whether as voluntary payment through GST
DRC-03 or any other mode until culmination of
proceeding or determination of tax payable by an
appropriate authority having jurisdiction over the
case.
(iii) For granting any other relief (s) to which the
petitioner is otherwise found entitled to.”
4. It is the case of the petitioner that the petitioner is a
registered private limited company and has got registration
under the Central/Bihar Goods and Services Tax Act, 2017
(hereinafter referred to as the ‘Act of 2017’). The registration
certificated dated 07.02.2019 (Annexure-P1 series) has been
brought on record to satisfy this Court with regard to the
registration of the petitioner in Form GST REG-06.
5. Learned counsel for the petitioner submits that the
petitioner has been subjected to several notices and summons by
Patna High Court CWJC No.809 of 2026(2) dt.23-04-2026
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the respondent herein directing the presence of the petitioner
and compliance to various queries as regards supply of goods
and claim of input tax credit etc. The petitioner has been
subjected to assessment by the State respondent.
6. Learned counsel for the petitioner submits that
since several such notices and summons have been issued in a
long span of time, the petitioner has challenged the propriety of
issuance of multiple notices and summons.
7. Learned counsel submits that State-respondent
(Respondent No. 7) had issued an intimation of tax ascertained
as payable under Section 74 (5) of the Act. The notice mentions
claim of excess input tax credit as per comparison between
GSTR 3B and GSTR 2B. The sum total of the availment of
input tax credit in between the period April, 2023 to March,
2024 under the CGST/SGST/IGST is to the tune of Rs.
34,77,301.90. The interest and penalty thereon takes the total
amount to Rs. 71,21,250.87. The notice advises the petitioner to
pay the tax as ascertained payable along with applicable interest
and penalty failing which show cause notice under Section 74
(1) of the Act would be issued.
8. It is submitted that respondent no. 7 has also issued
a notice for the period 2024-25. A tax amount of Rs. 87,08,413/-
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had been worked out and the interest as well as penalty thereof
would take the total amount to Rs. 1,75,45,662.80.
9. Respondent No. 7 has issued another show cause
notice for both the Tax periods April, 2023- March, 2024 and
April, 2024 – July, 2024. It is the case of the petitioner that the
respondent no. 7 has acted in furtherance of the notice issued by
him and passed an order under Section 74 of the Act. The
explanations furnished in course of assessment proceedings
have not been considered and the findings in the show cause
notices have been confirmed.
10. On perusal of the impugned summons, to this
Court it appears that those have been issued under Section 70 of
the Act of 2017. The Senior Intelligence Officer, Directorate
General of GST Intelligence, Zonal Unit, Meerut is making an
enquiry in connection with availment of fake ITC by the
petitioner’s firm under the Act of 2017. The Inquiring Officer is
seeking attendance of the Director of the petitioner’s firm to
give evidence and/or to produce documents or things of the
description which are in the possession and under control of the
petitioner. The petitioner has been called upon to tender
statement and to produce purchase ledger/ bills/ bank account
for a period 01.07.2017 to till date.
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11. It is evident on perusal of all the summons that
those have been issued by the proper officer under the Act who
have got power to summon any person whose attendance he
considers necessary either to give evidence or to produce a
document or any other thing in any enquiry in the same manner
as provided in the case of a Civil Court under the provisions of
the Code of Civil Procedure. The power of the proper officer is
duly provided under Section 70 of the Act of 2017.
12. We find no reason to interfere with the summons.
Any interference at this stage would only amount to scuttling
the ongoing inquiry.
13. This writ application has no merit. It is dismissed
with a cost of Rs. 25,000/-, which would be payable to the Patna
High Court Legal Services Committee within one month from
today and receipt thereof shall be filed.
(Rajeev Ranjan Prasad, J)
( Soni Shrivastava, J)
devendra/priyanka
U
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