Rakesh Ranjan vs. The Union Of INDIA

Held

The Court disposed of the writ petition by directing Respondent No. 7, the Managing Director of Bihar State Building Construction Corporation Limited, to consider and decide the petitioner's case. This decision was to be made in terms of the judgment and order dated July 5, 2019, passed in C.W.J.C. No. 1452 of 2019, and the letter No. 5405 dated July 30, 2019. The Court explicitly clarified that all issues of facts and law were left open for consideration by the said authority. The Court expressed hope and expectation that the Managing Director would decide the petitioner's case expeditiously, preferably within four months from the date of receipt of the Court's order. The operative direction was to remand the matter for fresh consideration by the specified authority.

Facts

The petitioner, M/s Baba Barphani Construction, filed a writ petition before the Patna High Court challenging demand notices dated January 13, 2020, issued by the Joint Commissioner State Tax (Respondent No. 3). These notices demanded payment of CGST/SGST and interest for various periods, including August 2019, April 2019, February 2019, and November 2018. The total disputed tax amount was Rs. 37,88,121/- and the total interest amount was Rs. 7,44,753/-. The petitioner argued that these demands were illegal, arbitrary, without jurisdiction, and violated the terms of their agreements. They also contended that the demands were violative of a previous judgment dated July 5, 2019, passed in C.W.C.J. No. 1452 of 2019 and an associated letter dated July 30, 2019.

Key Issues

1. Whether the demand notices issued by the Joint Commissioner State Tax for CGST/SGST and interest are illegal, arbitrary, without jurisdiction, and violative of the terms of the agreements and prior judicial pronouncements? (Question of law and fact, turning on principles of natural justice, contractual obligations, and adherence to court orders). Petitioner's Arguments: The petitioner argued that the demand notices were squarely covered by the judgment and order dated July 5, 2019, in C.W.J.C. No. 1452 of 2019 (M/s Jai Bhawani Construction Vs. The Union of India and Ors.) and the subsequent letter dated July 30, 2019, issued by the Engineer-in-Chief. They asserted that the demands were not only illegal and arbitrary but also issued without jurisdiction and beyond the agreed terms of the tenders/bids/agreements. They sought quashing of these notices and a direction to prevent freezing of their bank accounts. Revenue/State's Arguments: The counsel for the State submitted that they had no objection with the matter being remanded to the appropriate authority for consideration of the petitioner's case on its own merits in accordance with law.