M/S Shiv Shakti Medical Agency vs. The Union Of INDIA

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CWJC/9816/2025HC PatnaGSTCNR BRHC01048060202508 April 2026Bench: MR. JUSTICE MOHIT KUMAR SHAH,MR. JUSTICE ARUN KUMAR JHA3 pages

AI SummaryRemanded

Facts

The petitioner, M/s Shiv Shakti Medical Agency, filed a writ petition before the Patna High Court challenging a demand notice issued by the Superintendent (Gr.14), CGST Audit Circle, Bhagalpur. The notice, dated March 24, 2025, was issued under Form GST DRC-01A and intimated a liability under Section 74(5) of the CGST Act, 2017, amounting to Rs. 2,89,678/- including interest and late fee. The petitioner was directed to pay this amount within seven days, failing which a show cause notice under Section 74(1) of the CGST Act, 2017, would be issued for recovery. The petitioner also sought a stay on the implementation of this demand notice pending the final disposal of the writ application.

Held

The Court granted the petitioner liberty to avail alternative remedies available under the provisions of the Central Goods and Services Tax Act, 2017. Consequently, the writ petition was disposed of on this basis. The Court did not adjudicate on the merits of the demand notice or the petitioner's liability. The specific alternative remedies the petitioner intended to pursue were not detailed in the judgment. The operative direction was to allow the petitioner to pursue other statutory avenues for redressal, effectively withdrawing the writ petition from the High Court's consideration.

Key Issues

1. Whether the demand notice dated March 24, 2025, issued under Form GST DRC-01A by the Superintendent (Gr.14), CGST Audit Circle, Bhagalpur, is valid and enforceable, particularly in light of the petitioner's liability under Section 74(5) of the CGST Act, 2017, for an amount of Rs. 2,89,678/- including interest and late fee? The petitioner, M/s Shiv Shakti Medical Agency, sought to quash the aforementioned demand notice and stay its implementation. The petitioner argued that they should be allowed to avail alternative remedies available under the Central Goods and Services Tax Act, 2017. The respondents, represented by the Union of India and various CGST authorities, did not present any arguments as the petitioner sought liberty to pursue alternative remedies.

Sections Cited

Section 74(5), Section 74(1)

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.9816 of 2025 ====================================================== M/s Shiv Shakti Medical Agency, through its Partner Arvind Kumar Dokania (Male) aged about 49 years, son of Parmeshwar Lal Dokaniya, resident of 44 Shiv Shakti Medical Agency, near Doman Lal School, Bangaon Road, P.S- Saharsa Sadar, District- Saharsa, PIN Code-852201. ... ... Petitioner/s Versus 1. The Union of India through the Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi-110001 2. Central Board of Indirect Taxes and Customs (CBIC) through its Chairman, Ministry of Finance, Department of Revenue, North Block, New Delhi- 110001. 3. Principal Chief Commissioner, CGST and Central Excise, Patna Zone, GST Bhawan, Gandhi Maidan, Patna-800001. 4. Commissioner, CGST and Central Excise, Central Tax Audit Circle, Bhagalpur. 5. Commissioner-cum-Secretary of Commercial Taxes Department, KAR BHAWAN, Bir Chand Patel Marg, Patna-1. 6. Deputy/Assistant Commissioner, Central Tax Audit Circle, Bhagalpur 7. Superintendent (Gr.14), office of the Central GST and Central Excise, Audit Circle, Bhagalpur. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Dr. Ashok Kumar Sharma For the Respondent/s : Mr. Amit Pandey, Sr. SC, CGST & CX Ms. Shilpi Keshri, Jr. SC, CGST & CX ====================================================== CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH and HONOURABLE MR. JUSTICE ARUN KUMAR JHA

ORAL ORDER (Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH) 2 08-04-2026 The present writ petition has been filed by the petitioner seeking the following reliefs :- “That the present writ petition is being 2/3 filed under Article 226 of the Constitution of India, in the nature of writ of Certiorari for quashing the demand notice under Form GST DRC-01A dated 24.03.2025 bearing C.No. II(39)10/GST

Audit/Shiv Shakti/Gr.14/BGP/2024-25/2107, (Annexure: P/1 to this writ petition), issued by the Superintendent (Gr.14), CGST Audit Circle, Bhagalpur (Respondent No. 7) intimating the petitioner regarding the liability under section 74(5) of the CGST Act, 2017 amounting to total Rs.2,89,678/- including the interest and late fee, by which the petitioner was directed to pay the aforesaid amount within a period of 07(seven) days from receipt of this letter, failing which show cause notice will be issued under section 74(1) of CGST Act, 2017 to recover the Govt. dues. Further, for issuance of an appropriate writ, order or direction in the nature of writ of Mandamus, directing and commanding the respondent concern to stay the implementation of the aforesaid demand notice date 24.03.2025 (Annexure: P/1 to this petition) till final disposal of this writ application. Any other relief/reliefs to which the petitioner is found entitled too.”

At the outset, the learned counsel for the petitioner seeks liberty on behalf of the petitioner to avail such alternative 3/3 remedies as are available under the provisions contained in the Central Goods and Services Tax Act, 2017. Liberty, so sought, is granted.

Accordingly, the present writ petition stands disposed of.

GAURAV S./- (Mohit Kumar Shah, J) (Arun Kumar Jha, 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.