Patna High Court
Santosh KumarversusThat State of Bihar
- Decided
- Disposal
- DISPOSED
Holding
The assessment order passed by the Assistant Commissioner of State Tax, Begusarai for October 2019‑March 2020 is quashed and the matter is remanded for a fresh show‑cause notice and re‑assessment.
Summary
Santosh Kumar filed a writ petition challenging a tax assessment for October 2019 to March 2020 under the Bihar GST Act, alleging that he had already paid the tax and that the assessment was made without a proper show‑cause notice, partly due to the COVID‑19 pandemic. He also sought to quash a notice dated 10‑12‑2020 and a summary order under GST Rules, and to have a bank account freeze lifted. The petitioner argued that the turnover shown on the tax portal was incorrect and that the demand of Rs. 20,000 was unlawful. Both parties consented to remand the matter for a fresh show‑cause process. The Court held that the petitioner had not been given a fair opportunity to respond and therefore quashed the assessment order, directing the Assistant Commissioner to issue a fresh notice within two weeks, allow a two‑week reply period, and pass a final order within four weeks. The petition was disposed of on these terms.
Issues considered
- Whether the assessment order for the period October 2019‑March 2020 under the Bihar GST Act should be quashed.
- Whether the notice dated 10‑12‑2020 and the summary order under GST Rules were validly issued.
- Whether the hold on the petitioner's bank account should be removed.
Legislation cited
- GST Rules — s. Rule 142(5), Rule 26(3)
Subjects
- GST
- assessment order
- show cause notice
- quash
- remand
- COVID-19
- bank account freeze
- tax law
- High Court
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.9618 of 2025
======================================================
Santosh Kumar S/o Ram Kumar Singh, resident of Naula Ward No. 10,
Naula, Naula Birpur, Naula, Bhagwanpur, District- Bhagalpur - 85112-
... ... Petitioner
Versus
1. That State of Bihar through its Commissioner, State Tax, Bihar, Patna.
2. The Joint Commissioner, State Tax, Begusarai.
3. The Assistant Commissioner, State Tax, Begusarai.
4. The Additional Commissioner State Tax (Appeal), Central Division, Patna.
... ... Respondents
======================================================
Appearance :
For the Petitioner/s : Mr. Rakesh Kumar Singh, Advocate
For the Respondent/s : Mr. Government Pleader (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 29-04-2026 Heard the learned counsel for the parties.
2. The present writ petition has been filed seeking
the following reliefs:
“(i) for issuance of a writ in the nature of
certiorari commanding the respondent to quash the
ex-party order dated Nil contained in Annexure- 6
passed by the respondent no. 3, whereas and
whereunder, the respondent has imposed the tax for
the period of October 2019 to March 2020,
whereas the petitioner has already paid the tax in
the return filed for the financial year 2020-21.
(ii) for issuance of an order / orders to
remand the matter to the respondent to look into
the matter for ascertaining whether the tax for the
period in question or not.
Patna High Court CWJC No.9618 of 2025(3) dt.29-04-2026
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(iii) for the direction or order to quash the
notice dated 10.12.2020 and summary order
passed under Rule 142(5) GST dated 15.01.2021
because both the notices not pursuant to the sub
rule (3) of Rule 26 of the GST Rule.
(iv) Also direction of the respondents to
remove the hold on bank account no.
2167102000001526 of IDBI Bank which is in the
name of the petitioner.”
3. Learned counsel for the petitioner submits that a
sum of Rs. 4,68,356/- had been paid to the petitioner in the
financial year 2019-20, as has been certified by the Executive
Engineer, P.H. Division, Begusarai, however the turn over of the
petitioner shown on the portal of the respondent was Rs.
8,02,776.78/-, hence the petitioner had filed his return
accordingly. Nonetheless, a show cause notice dated 10.12.2020
was issued to the petitioner under Section 73 of the Bihar Goods
and Services Tax Act, 2017 (hereinafter referred to as “Act,
2017”), wherein the turn over was shown to be Rs. 7,91,216/-
and accordingly, the demand was assessed as 1,27,763.64/-
4. It is the case of the petitioner that on account of
the COVID-19 pandemic, the petitioner neither received the
show cause notice nor could attend to the same nor was in a
position to file any show cause reply, but during the interregnum
period the impugned order was passed for the period October,
2019 to March, 2020 raising a demand of Rs. 20,000/-.
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5. Having regard to the facts and circumstances of
the case and with a view to providing a fair opportunity to the
petitioner to respond to the show cause notice dated 10.12.2020,
the learned counsel for the parties are not averse to the matter
being remanded back to the Assistant Commissioner of State
Tax, Begusarai Circle, Begusarai, after quashing the assessment
order passed in the present case pertaining to the period
October, 2019 to March, 2020.
6. In view of the aforesaid and with the express
consent of the parties, we deem it fit and proper to quash the
assessment order passed by the Assistant Commissioner of State
Tax, Begusarai Circle, Begusrai for the period October, 2019 to
March, 2020, and remand the matter back to him, who shall
issue fresh show cause notice to the petitioner within a period of
two weeks from today, whereupon the petitioner shall submit his
reply / objection within a period of two weeks thereafter and
then the learned Assistant Commissioner of State Tax, Begusarai
Circle, Begusarai shall pass the final assessment order afresh,
within a period of four weeks.
7. It is made clear that in case the petitioner fails to
respond to the show cause notice to be issued by the Assistant
Commissioner, Begusarai Circle, Begusarai within a period of
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two weeks of issuance of the said show cause notice, no further
opportunity shall be granted to the petitioner.
8. Accordingly, the present writ petition stands
disposed of on the aforesaid terms.
(Mohit Kumar Shah, J)
(Arun Kumar Jha, J)
Shahnawaz/-
U
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