M/S Aman Bricks vs. The State Of Bihar

Held

The Court held that the present writ application is disposed of strictly in terms of the order dated March 13, 2026, passed in C.W.J.C. No. 8948 of 2025 (M/s King Bricks versus The State of Bihar). Consequently, the impugned show cause notice dated September 18, 2023, the impugned order dated October 31, 2023, and the appellate order dated February 6, 2025, were set aside. The matter was remitted back to the Assessing Authority to undertake fresh steps for passing a fresh order. The Assessing Authority is directed to proceed strictly in accordance with the provisions contained in the Bihar Goods and Services Tax Act, 2017, and in light of the aforementioned judgment, after providing an adequate opportunity of hearing to the petitioner. A final order is to be passed within a period of six months from the date of receipt or production of a copy of this order. The Court did not expressly leave any issue undecided.

Facts

The petitioner, M/s Aman Bricks, a proprietary concern engaged in the brick kiln business, filed a writ application challenging a show cause notice dated September 18, 2023, issued for the financial year 2017-18. The petitioner also challenged an order dated October 31, 2023, passed by the Deputy Commissioner of State Tax, Lakhisarai, Bhagalpur, imposing tax, interest, and penalty amounting to Rs. 4,51,732.26. Furthermore, the petitioner sought to quash an appellate order dated February 6, 2025, and requested the refund of Rs. 2,68,000 deducted from their bank account, along with interest. The petitioner also sought status quo and the release of their bank account. The assessment was based on estimation by the Assessing Authority.

Key Issues

1. Whether the assessment of tax made on the basis of estimation by the Assessing Authority is valid, particularly in light of the principles of natural justice and statutory provisions of the Bihar Goods and Services Tax Act, 2017? Petitioner's Contention: The petitioner argued that the assessment was made on an estimation basis. They relied on a coordinate bench's decision in M/s King Bricks versus The State of Bihar (C.W.J.C. No. 8948 of 2025), where a similar matter was remanded back to the authorities for a fresh assessment after granting adequate opportunity of hearing. The petitioner contended that their case is fully covered by this precedent. Revenue's Contention: The learned counsel for the State did not dispute the petitioner's submissions and agreed that the writ petition could be disposed of in light of the judgment passed in M/s King Bricks versus The State of Bihar.