Maa Kali Enterprises Through Its Proprietor, Sushil Kumar Anand vs. The Union Of INDIA Through The Secretary

Held

The Court disposed of the writ petition by directing Respondent no. 7, the Chief Managing Director of the Bihar State Police Building Construction Corporation Pvt. Limited, to consider and decide the petitioner's case. This decision was to be made in terms of the judgment and order dated 05.07.2019 passed in C.W.J.C. No. 1452 of 2019 and analogous cases, and letter No. 5405 dated 30.07.2019. The Court clarified that all issues of fact and law were left open for consideration by the authority. The Court expressed hope that the authority would decide the case expeditiously, preferably within four months from the receipt of the Court's order. The operative direction was to remand the matter for fresh consideration by the designated authority.

Facts

The petitioner, Maa Kali Enterprises, through its proprietor Sushil Kumar Anand, filed a writ petition before the Patna High Court challenging letters/demand notices dated 11/12/2020, issued by the Joint Commissioner of State Tax (respondent no. 3). These notices demanded payment of CGST/SGST tax amounting to Rs. 15,47,015.16. The petitioner contended that these demands were illegal, arbitrary, without jurisdiction, and contrary to the terms of the respective tenders/bids/agreements. Furthermore, the petitioner argued that the demands violated a previous judgment dated 05.07.2019 passed in C.W.J.C. No. 1452/2019 and analogous cases, as well as a subsequent letter no. 5405 dated 30.09.2019. The petitioner also sought a direction to prevent their bank accounts from being frozen.

Key Issues

1. Whether the demand notices dated 11/12/2020 issued by the Joint Commissioner of State Tax (respondent no. 3) for a total CGST/SGST tax amount of Rs. 15,47,015.16 are illegal, arbitrary, without jurisdiction, and beyond the terms of the tenders/bids/agreements, and in violation of the judgment dated 05.07.2019 in C.W.J.C. No. 1452/2019 and analogous cases, and letter no. 5405 dated 30.09.2019. Petitioner's Contention: The petitioner argued that the demand notices were squarely covered by the judgment and order dated 05.07.2019 in C.W.J.C. No. 1452 of 2019 (M/s Jai Bhawani Construction Vs. The Union of India and Ors.) and analogous cases, as well as letter No. 5405 dated 30.07.2019 issued by the Engineer-in-Chief, which were issued pursuant to the aforementioned judgment. Revenue/State's Contention: 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 merit in accordance with law.