M/S. Ajay Int Udyog vs. The Union Of INDIA

Held

The Court held that the present writ application is fully covered by the order dated 13.03.2026 passed by a coordinate bench in M/s King Bricks versus State of Bihar (C.W.J.C. No. 8948 of 2025). The reasoning was that in similar circumstances, the coordinate bench had remanded the matter back to the authorities to pass a fresh order of assessment after granting an adequate opportunity of hearing to the petitioner. Consequently, the impugned ex-parte assessment orders for financial years 2020-21 to 2023-24, the summary of orders in Form GST DRC-07, and the recovery letters in Form GST DRC-13 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 of the Bihar Goods and Services Tax Act, 2017, after providing adequate opportunity of hearing to the petitioner, within six months. The order of attachment of the petitioner's bank account was also quashed.

Facts

The petitioner, M/s. Ajay Int Udyog, engaged in brick manufacturing and trading, filed a writ petition challenging ex-parte assessment orders for financial years 2020-21 to 2023-24, issued by the Deputy Commissioner of State Tax, Bhabhua Circle. The petitioner also challenged consequential summary of orders in Form GST DRC-07 and recovery letters issued in Form GST DRC-13, which led to the freezing of their bank account. The petitioner argued that assessments were made on an estimated basis. The State did not dispute the petitioner's submissions. The case was heard by the Patna High Court.

Key Issues

1. Whether the ex-parte assessment orders for financial years 2020-21 to 2023-24, issued by the Deputy Commissioner of State Tax, are liable to be set aside and quashed, and whether the consequential recovery letters and bank account attachment should be annulled, considering the petitioner's claim of lack of adequate opportunity to be heard and assessment on an estimated basis? (Mixed question of law and fact, concerning principles of natural justice and assessment procedures under the Bihar Goods and Services Tax Act, 2017). Petitioner's contention: The ex-parte assessment orders were passed without granting adequate opportunity of hearing and were based on estimation. The petitioner relied on a coordinate bench's order in M/s King Bricks versus State of Bihar (C.W.J.C. No. 8948 of 2025) which remanded a similar matter for fresh assessment after providing an opportunity of hearing. Revenue's contention: The State 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.