Patna High Court
M/s Ajay Kumar (a Sole Proprietor ship Firm)versusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The petitioner must first seek redress before the GST Tribunal under Section 112 of the Bihar GST Act, and the writ petition is therefore disposed.
Summary
M/s Ajay Kumar filed a writ petition in the Patna High Court challenging several tax orders, including a 27 July 2023 order by the Additional Commissioner (Appeal) that upheld an earlier order directing issuance of APL‑IV without considering the petitioner’s GSTR‑9 and GSTR‑2A returns, and ex‑parte orders dated 8 January 2021 and 9 January 2021 under Section 74 of the GST Acts imposing tax, interest and penalty. The petitioner also sought relief against a demand notice, bank account attachment and the issuance of a DRC‑13 notice. The Court examined whether the writ jurisdiction was appropriate given the statutory remedy available under Section 112 of the Bihar GST Act. It held that the petitioner must first approach the appropriate GST Tribunal under Section 112, and consequently granted liberty to do so. The writ petition was thereafter disposed.
Issues considered
- Whether the High Court can set aside the tax orders and demand notices issued under Section 74 of the GST Acts in a writ petition.
- Whether the petitioner is required to approach the GST Tribunal under Section 112 of the Bihar GST Act before seeking writ relief.
- Whether the attachment of the petitioner’s bank account can be restrained by a writ of mandamus.
Legislation cited
Subjects
- GST
- Section 74
- Section 112
- tax demand
- bank attachment
- writ petition
- appeal authority
- APL‑IV
- demand notice
- ex parte order
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.9500 of 2025
======================================================
M/s Ajay Kumar (a Sole Proprietor ship Firm) having it registered office at
Gopal Chhapra, C/O- Ajay Kumar, Kalyanpur, Bakhri, East Champaran,
Bihar. through its Sole Proprietor Mr. Ajay Kumar, aged about 54 Years, S/o
Parash Thakur
... ... Petitioner/s
Versus
1. The Union of India through the Secretary, Ministry of Finance, Department
of Revenue, having its office at Room No. 46, North Block, P.O. and P.S.
North Block, New Delhi-110001.
2. The Chief Commissioner, CGST and CX, Office at C.R Building, 1st Floor,
Bir Chand Patel Path, Patna, Bihar.
3. The State of Bihar through Commissioner BGST, New Secretariat, Patna.
4. Joint Commissioner of State Tax, Motihari, Tirhut, Bihar.
5. Deputy Commissioner of State Tax, Motihari, Tirhut, Bihar.
6. Assistant Commissioner of State Tax, Motihari, Tirhut, Bihar.
7. Additional Commissioner (Appeal), Tirhut Division, Muzaffarpur.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Anurag Saurav, Advocate
For the State : Mr. Vikash Kumar, Advocate
Mr. Rabish Kumar, Advocate
For CGST : Mr. Amit Pandey, Sr. Advocate, CGST & CX
Ms. Ruchi Mandal, Jr. SC, CGST & CX
======================================================
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
petitioner seeking the following reliefs :-
“(i) For issuance of appropriate
Patna High Court CWJC No.9500 of 2025(2) dt.08-04-2026
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writ/order/direction for setting aside order dated
27.07.2023 passed by Additional Commissioner
(Appeal), Tirhut Division, Muzaffarpur in Appeal Case
bearing Appeal Case No.ARN No. AD101021005252C
for the financial year 2019-20 whereby and where
under the Appellate Authority upheld the order dated
09.01.2021 passed by Respondent no.7 and directed to
issue APL-IV to the petitioner and the appellate
authority passed the order without considering the
Annual Return in the Form GSTR9 filed by the
petitioner and without considering the GSTR2A of the
petitioner.
(ii) For Issuance of an appropriate writ/
order/ direction for setting aside Ex parte Order Dated
08.01.2021 passed under section 74 of GST Act, 2017
by respondent no.6 i.e. Assistant Commissioner of
State Tax jurisdiction, Motihari Tirhut, Motihari,
Bihar, Whereby and Where under respondent no.6 has
imposed tax amount of Rs. 13,67,686/- under CGST
and SGST (along with interest and penalty) i.e a total
amount of Rs. 27,35,372.00/-under section 74 of BGST
Act and the said proceeding has been initiated by the
respondent authorities on the ground that an amount
of Rs. 1,10,9,830/-were reflecting in GSTR7 of
Government Department on which TDS had been
deducted by the Government Authority before making
payment to the petitioner against work done and the
said amount was not mentioned in the GSTR3B Return
of the petitioner and petitioner had suppressed an
amount of Rs.1,10,69,830/-as Taxable Turn Over and
an amount of Rs. 6,64,190/- as Tax, Rs.6,64,190/- as
Penalty and Rs. 39,306/- as Interest has been imposed
under CGST and SGST and the said order has been
Patna High Court CWJC No.9500 of 2025(2) dt.08-04-2026
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passed without considering the GSTR3B & Annual
Return of 2019-2020, where petitioner has declared
and mentioned the amount as Taxable Turnover of
Rs.1,41,34,396/-.(Rs. 1,26,19,996/-as Taxable value
and Rs,7,57,199.77 as CGST & SGST).
(iii) For setting aside Order bearing
Reference No. ZD100121007579Y Dated:09.01.2021
passed under Section 74 of CGST Act,2017, Whereby
and Where under an amount of Rs.13,67686/- has been
imposed against the petitioner for the Financial Year
2019-20 as CGST & SGST including tax, Interest and
Penalty.
(iv) For setting aside the demand notice
issued in the Form of DRC 07 bearing Reference No.
ZD100121007579Y Dated: 09.01.2021 wherebv and
Where under an amount of Rs.27,35,372/- has been
imposed as Tax, Interest and Penalty under CGST and
SGST.
(v) For Issuance of Writ in the nature of
mandamus directing the respondent authorities to
release the bank account of the petitioner already
attached during the proceeding.
(vi) For restraining the respondent
authority for issuance of DRC 13 for recovery of tax
amount through the Bank account attachment.
(vii) For issuance of an appropriate
Writ(s), orders(S), and/or direction(s), as Your
Lordships may deem fit and proper in the facts and
circumstances of this case in the interest of justice.”
2. Admittedly, the appeal filed by the petitioner has
been rejected by an order dated 27.07.2023 passed by the
learned Additional Commissioner (Appeal), State Tax, Tirhut
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Division, Muzaffarpur, hence the remedy available to the
petitioner is to challenge the same by approaching the learned
Tribunal under Section 112 of the Bihar Goods and Services Tax
Act, 2017 (hereinafter referred to as the ‘Act, 2017’).
3. At this stage, the learned counsel for the petitioner
seeks liberty on behalf of the petitioner to challenge the
aforesaid order dated 27.07.2023 by approaching the learned
Tribunal under Section 112 of the Act, 2017. Liberty, so sought,
is granted.
4. Accordingly, the present writ petition stands
disposed of.
(Mohit Kumar Shah, J)
(Arun Kumar Jha, J)
GAURAV S./-
U
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