M/S Kunal Ett Udyog vs. The Union Of INDIA

Held

The Court held that the present writ application was fully covered by the order dated 13.03.2026 passed in M/s King Bricks versus State of Bihar (C.W.J.C. No. 8948 of 2025). The Court noted that in similar circumstances, a Coordinate Bench had remanded the matter back to the Assessing Authority for passing a fresh order after providing an adequate opportunity of hearing to the petitioner. Consequently, the impugned order DRC-07 dated 07.02.2024 and the CGST demand notice dated 07.02.2024 were set aside. The matter was remitted back to the Assessing Authority to undertake fresh steps for passing a fresh order strictly in accordance with the provisions of the Bihar Goods & Services Tax Act, 2017, and in light of the aforesaid judgment, after providing an adequate opportunity of hearing to the petitioner. A final order was to be passed within six months from the date of receipt of the order. The order of attachment of the petitioner's bank account was also quashed.

Facts

The petitioner, M/s Kunal ETT Udyog, a sole proprietorship engaged in the brick kiln business, filed a writ petition before the Patna High Court. The petitioner challenged an order DRC-07 dated 07.02.2024 and a CGST demand notice dated 07.02.2024, both pertaining to the assessment year 2020-21. The petitioner also sought the release of its attached bank account. The assessment was made on an estimated basis by the Assessing Authority. The petitioner argued that a Coordinate Bench of the High Court had previously dealt with an identical matter in M/s King Bricks versus State of Bihar, C.W.J.C. No. 8948 of 2025, and had remanded the case for fresh assessment after granting an adequate opportunity of hearing. The State did not dispute these submissions.

Key Issues

1. Whether the impugned order DRC-07 dated 07.02.2024 and the CGST demand notice dated 07.02.2024, which were passed on an estimated basis, are liable to be set aside in light of the principles laid down in M/s King Bricks versus State of Bihar (C.W.J.C. No. 8948 of 2025)? Petitioner's contention: The petitioner argued that the assessment was made on an estimated basis. They relied on a previous judgment by a Coordinate Bench of the High Court in M/s King Bricks versus State of Bihar, which remanded a similar matter for fresh assessment after providing an adequate opportunity of hearing. Therefore, the present writ application is covered by that precedent. Revenue/State's contention: The counsel for the State did not dispute the petitioner's submissions and agreed that the writ petition could be disposed of in light of the judgment in M/s King Bricks versus State of Bihar.