Patna High Court
M/s. Kuber Metal and Power TradingversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The Court granted liberty to the petitioner to file an appeal under Section 112 of the Bihar GST Act, 2017 and disposed of the writ petition.
Summary
M/s Kuber Metal and Power Trading filed a writ petition challenging an ex‑parte GST assessment order dated 12‑02‑2024 and subsequent appellate orders that imposed a liability of Rs 16,26,025 for the period Oct‑2019 to Jan‑2020. The petitioner alleged that the assessment and appellate authorities acted without hearing, mis‑applied the law, and retrospectively cancelled the supplier's GST registration to deny input tax credit. The petition sought quashing of the assessment, demand, and appellate orders, a mandamus to stay coercive recovery, and a refund of the pre‑deposit amount. The High Court observed that the petitioner has a specific statutory remedy under Section 112 of the Bihar GST Act, 2017, to challenge the orders. Accordingly, the Court granted liberty to file an appeal under that provision and disposed of the writ petition.
Issues considered
- Whether the ex‑parte assessment order and subsequent appellate orders can be set aside by a writ of certiorari.
- Whether the respondents acted illegally by passing orders without hearing or proper appreciation of material.
- Whether the retrospective cancellation of the supplier's GST registration can be used to deny the petitioner’s input tax credit.
- Whether the petitioner is entitled to liberty to invoke the remedy under Section 112 of the Bihar GST Act, 2017.
Legislation cited
- Central Goods and Services Tax Act, 2017 — s. 107(6)(b), 73(1)
Subjects
- GST
- ex‑parte assessment
- writ of certiorari
- Section 112
- Bihar GST Act
- cancellation of registration
- input tax credit
- appellate authority
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.9622 of 2025
======================================================
M/s. Kuber Metal and Power Trading having its office at- 18/206, New
Bangali Toal, Near Devi Sthan, Karbigahiya, G.P.O., Patna- 800001 through
its Proprietor Vikash Kumar (Male), aged about 25 years, S/o Pramod Kumar
Yadav, Resident of 18/206, New Bangali Tola, Devi Sthan, Postal Park, P.S.-
Jakkanpur, District- Patna, Bihar.
... ... Petitioner/s
Versus
1. The Union of India through the Secretary, Department of Revenue, Industry
of Finance, North Block, New Delhi- 110001.
2. The Secretary, Department of Revenue, Ministry of Finance, North Block,
New Delhi- 110001.
3. The State of Bihar, through the Commissioner cum Secretary, Commercial
Tax Department, Govt. of Bihar, Patna.
4. The Commissioner cum Secretary, Commercial Tax Department, Govt. of
Bihar, Patna.
5. The Additional Commissioner of State Taxes (Appeals), West Division,
Patna.
6. The Deputy Commissioner State Taxes, South Circle-1, Patna, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Madan Kumar, Advocate
For the UOI : Mr. Amit Pandey, Sr. SC, CGST
Mr. Rakesh Kr. Advocate
Ms. Asmita Sinha, Advocate
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 25-03-2026 The present writ petition has been filed seeking for
the following reliefs:-
“(i) For issuing a writ of certiorari or any other
appropriate writ quashing/setting aside the assessment order
dated 12.02.2024 (Annexure-P/1) passed by Respondent No.
6 for the period of Oct-2019 to Jan-2020 (F.Y 2019-20)
Patna High Court CWJC No.9622 of 2025(2) dt.25-03-2026
2/4
whereby and whereunder an ex-parte assessment order has
been passed for the aforesaid period and thereby a total
liability of Rs.16,26,025/- (with breakup as (a) Tax IGST
worth Rs.9,65,000/- (b) Interest worth Rs.5,64,525/- and (c)
Penalty worth Rs.96,500/-), has been imposed on the
petitioner;
(ii) For issuing a writ of certiorari or any other
appropriate writ quashing/ setting aside the demand issued
in form DRC 07- dated 12.02.2024 (Ref No.
ZD1002240092736) (Annexure -P/2) i.e. by Respondent No.
6 for the period of Oct-2019 to Jan-2020 (F.Y 2019-20)
whereby and whereunder the demand order DRC 07 has
been issued under Sec 73(1) of the CGST/BGST Act, 2017 for
the aforesaid period. Through the said DRC-07 a demand
has been raised for the aforesaid period a total liability of
Rs.16,26,025/- (with breakup as-(a) Tax IGST worth
Rs.9,65,000/- (b) Interest worth Rs.5,64,525/- and (c)
Penalty worth Rs.96,500/-) has been imposed on the
petitioner;
(ii) For issuing a writ of certiorari or any other
appropriate writ quashing/setting aside the Appellate order
bearing No. 8360 dated 30.01.2025 (Annexure-P/3) passed
in Appeal Case No. AD100524004009T dated 11.05.2024 by
Respondent No.5 for the October 2019 to January 2020 (F.Y
- 2019-20 whereby and whereunder the appellate authority
i.e. Respondent No.5 has rejected (affirming the original
adjudication order and demand and modifying the interest
until the date of passing the appeal order) the appeal
preferred by the petitioner without considering the fact of
case and material available on record;
(iv) For issuing a writ of certiorari or any other
appropriate writ quashing/setting aside the APL-04 bearing
No. ZD1002250003955 dated 01.02.2025 (Annexure-P/4)
Patna High Court CWJC No.9622 of 2025(2) dt.25-03-2026
3/4
passed in Appeal Case No. AD100524004009T by
Respondent No.5 for the October 2019 to January 2020
whereby and whereunder the appellate authority i.e.
Respondent No.5 has rejected (affirming the original
adjudication order and demand and modifying the interest
until the date of passing the appeal order) the appeal
preferred by the petitioner without considering the fact of
case and material available on record; the aforesaid demand
has been modified and APL-04 has been issued worth
Rs.17,70,775/- (with breakup as-(a) Tax IGST worth
Rs.9,65,000/- (b) Interest worth Rs.7,09,275l- and (c)
Penalty worth Rs.96,500/-)
(v) For issuing a writ of mandamus or any other
appropriate writ directing the Respondents not take any
coercive action including recovery from bank account and
third parties until pendency of the present writ application;
(vi) For issuing writ of mandamus and thereby
directing the Respondents to refund a sum of Rs.96,500/-
(IGST); which was deposited by the petitioner as 10% (ten
percent) of disputed tax amount as needed to be paid as pre-
deposit (Section 107(6)(b) of Central Goods and Service Tax
Act, 2017) before filing an appeal under CGST/SGST for the
aforesaid period i.e. October 2019 to January 2020 (F.Y.-
2018-19;
(vii) For holding that the impugned ex-parte
assessment order dated 12.02.2024 (Annexure P/1) and the
appellate order dated 01.02.2025 (Annexure P/3) have been
issued in most illegal manner by Respondent No.6 and 5
without examining the records and without appreciating the
supporting materials submitted during the course of personal
hearing in appeal; as also without delving into the merit of
the case;
(viii) For holding that the Respondents have
Patna High Court CWJC No.9622 of 2025(2) dt.25-03-2026
4/4
wrongly construed the cancellation of GST Registration of
the supplier of petitioner with retrospective date for denial of
ITC claim of the petitioner for the concerned period i.e.
October to January, 2020.”
2. Admittedly, the appeal filed by the petitioner has
been dismissed on merits and the petitioner is having a remedy
of filing appeal under Section 112 of the Bihar Goods and
Services Tax Act, 2017 (hereinafter referred to as the ‘Act,
2017’).
3. In view of the aforesaid, the learned counsel for the
petitioner seeks liberty on behalf of the petitioner to challenge
the aforesaid order dated 30.01.2025 passed by the Additional
Commissioner of State Tax (Appeals), West Division, Patna in
Appeal Case No. AD100524004009T by availing the remedy
provided for 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
Checking your session…