M/S Aman Bricks vs. The State Of Bihar

Held

The Court held 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. Therefore, the present writ application was disposed of strictly in terms of the order dated 13.03.2026, passed in C.W.J.C. No. 8948 of 2025 (M/s King Bricks versus State of Bihar). Consequently, the show cause notice dated 27.12.2023, the order dated 30.04.2024, and the appellate order dated 06.02.2025 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 contained in the Bihar Goods and 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 a copy of the order.

Facts

The petitioner, M/s Aman Bricks, a proprietary concern engaged in the brick kiln business, filed a writ application challenging a show cause notice dated 27.12.2023 (Form GST DRC-01), an order dated 30.04.2024 passed by the Deputy Commissioner of State Tax, Lakhisarai, Bhagalpur (in DRC-07), and an appellate order dated 06.02.2025. The petitioner contended that the tax assessment was made on an estimation basis by the Assessing Authority. The petitioner relied on a previous judgment by a Coordinate Bench of the same High Court in M/s King Bricks versus State of Bihar (C.W.J.C. No. 8948 of 2025), which had remanded a similar matter for fresh assessment after granting an adequate opportunity of hearing. The State counsel did not dispute these submissions.

Key Issues

1. Whether the assessment of tax made on the basis of estimation by the Assessing Authority is sustainable in law, particularly when the petitioner claims an adequate opportunity of hearing was not provided? 2. Whether the impugned show cause notice, assessment order, and appellate order are liable to be quashed and the matter remanded for fresh consideration in light of the precedent set in M/s King Bricks versus State of Bihar? Petitioner's Argument: The petitioner argued that the assessment was based on estimation and that a Coordinate Bench of the High Court, in an identical case (M/s King Bricks), had remanded the matter back to the authorities for a fresh assessment after providing an adequate opportunity of hearing. Therefore, the present writ application is covered by that precedent. Revenue's Argument: The State counsel 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.