M/S Kameshwar Rai, (A Sole Proprietorship Firm) vs. The Union Of INDIA

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CWJC/10066/2026HC PatnaGSTCNR BRHC01066850202621 July 2026Bench: MR. JUSTICE ANIL KUMAR SINHA,MR. JUSTICE VIKASH KUMAR2 pages

AI SummaryRemanded

Facts

The petitioner, M/s Kameshwar Rai, a sole proprietorship firm, filed a writ application before the Patna High Court seeking a direction to the respondents to release or de-freeze all its bank accounts. The petitioner's PAN number is AGNPR8953J. The respondent State authorities, represented by Ms. Supragya, learned AC to GP-7, produced a letter dated 24.06.2026. This letter indicated that instructions had been issued by the Joint Commissioner, State Taxes, to de-freeze the petitioner's bank account and directed the respective banks to release it for operation. The writ application was filed to address the freezing of these accounts.

Held

The Court disposed of the writ application based on the information provided by the respondent State authorities. The Court noted that a letter dated 24.06.2026 had been produced, which stated that instructions had been given by the Joint Commissioner, State Taxes, to de-freeze the petitioner's bank account. The respective banks had also been directed to release the account for the petitioner's operation. Therefore, the Court observed that the petitioner would be at liberty to operate its bank accounts based on its PAN number, in light of the direction issued by the Joint Commissioner, State Taxes (In-charge). The Court also granted liberty to the petitioner to approach the Court again if any similar letter had been issued by the Joint Commissioner, State Tax (In-charge) to different departments with whom the petitioner is working as a contractor, implying a potential broader impact of the revenue's actions.

Key Issues

1. Whether the Court should direct the release of the petitioner's bank accounts, given the circumstances leading to their freezing and the subsequent actions taken by the revenue authorities? Petitioner's Contention: The petitioner sought a direction for the release of its bank accounts, which were presumably frozen by the revenue authorities, preventing its operations. The writ application was filed to seek judicial intervention for the de-freezing of these accounts. Revenue's Contention: The respondent State authorities, through a letter dated 24.06.2026, informed the Court that instructions had already been issued by the Joint Commissioner, State Taxes, to de-freeze the petitioner's bank account. The respective banks were also directed to release the account for the petitioner's operation. This indicated that the issue raised by the petitioner had been addressed by the revenue authorities prior to the Court's hearing.

Sections Cited

Not specified

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.10066 of 2026 ====================================================== M/S Kameshwar Rai, (A Sole Proprietorship Firm) having its Registered Office - Near Umanath Mandir, Dahiyawan, District-Chapra at Saran through its sole proprietor Mr. Kameshwar Rai, aged about 52 Years, S/o Chhathilal Rai ... ... 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, Bihar Goods and Service Tax, Kar Bhawan, Patna 4. The Joint Commissioner of State Tax, Office of Commissioner of State Tax, Saran Division, Saran at Chapra, Bihar. 5. The Deputy Commissioner of State Tax, Office of Commissioner of State Tax, Saran Division, Saran at Chapra, Bihar. 6. The Additional Commissioner (Appeal), Office of the Additional Commissioner (Appeal) of State Tax, Saran Division, Saran at Chapra. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Anurag Saurav, Advocate For the Respondent/s : Mr. Additional Solicitor General ====================================================== CORAM: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA and HONOURABLE MR. JUSTICE VIKASH KUMAR

ORAL ORDER (Per: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA) 3 21-07-2026 Petitioner has filed the present writ application for directing the Respondent Authority to release/de-freeze all Bank accounts of the petitioner, maintained in different Banks, as stated in the writ application. PAN number of the petitioner is AGNPR8953J.

Ms. Supragya, learned AC to GP- 7 produced a Patna High Court CWJC No.10066 of 2026(3) dt.21-07-2026 2/2 letter dated 24.06.2026, having Letter No. 389 to the effect that the instruction has been given to the Bank by the Joint Commissioner, State taxes to de-freeze the Bank account of the petitioner having PAN No. AGNPR8953J and the respective Banks have been directed to release the Bank account of the petitioner for its operation by him.

In view of the Letter dated 24.06.2026 as aforesaid produced by the learned counsel for the State, the writ application is disposed with observation that petitioner shall be at liberty to operate his Bank accounts based upon PAN No. AGNPR8953J, in the light of the direction issued by the Joint Commissioner State taxes (In-charge).

Liberty is given to the petitioner to approach this Court, if any similar letter has been issued by the Joint Commissioner State Tax (In-charge) to different Departments with whom the petitioner is working as a contractor.

sweta/- (Anil Kumar Sinha, J) ( Vikash Kumar, J) U

Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.