M/S. Deka Enterprises vs. The State Of Bihar

Held

The Court allowed the petitioner to withdraw the writ application. The petitioner was granted liberty to approach Respondent No. 2 or any other competent authority/appellate authority within a period of thirty days from the date of the order. The Court directed that if any such remedy is applied for within the stipulated period, it will be considered and decided by the competent authority/forum/appellate authority within a reasonable period, preferably within four months from the date of the application. The Court did not decide on the merits of the issues raised by the petitioner regarding the penalty order and the detention of goods, as the matter was withdrawn. The ratio decidendi is that when an alternative statutory remedy exists and the petitioner seeks to withdraw to pursue that remedy, the High Court may permit such withdrawal with liberty to approach the appropriate forum, provided the application is made within a specified timeframe and the competent authority is directed to decide it expeditiously.

Facts

M/s. Deka Enterprises, the petitioner, filed a writ application before the Patna High Court challenging an order dated 21.05.2025 passed by the Joint Commissioner of State Tax, Supaul Circle (Respondent No. 2). This order, issued under Section 129(3) of the GST Act, imposed a penalty of Rs. 6,95,842/- for the tax period of May 2025. The petitioner also sought to set aside various notices and orders issued by the respondent authorities, including a show-cause notice in DRC-01 dated 13.05.2025 and other forms related to the detention and seizure of a truck and goods. The petitioner sought the release of the detained truck and goods, arguing their detention was illegal and without jurisdiction. The respondents, represented by the learned AC to SC-11, contended that the petitioner had an alternative remedy under the Bihar Goods and Services Tax Act, 2017.

Key Issues

1. Whether the petitioner is entitled to a writ in the nature of Mandamus/Certiorari to set aside the order dated 21.05.2025 passed by Respondent No. 2 under Section 129(3) of the GST Act, along with DRC-07 and FORM-GST-MOV-09, quantifying a penalty of Rs. 6,95,842/- for the tax period May 2025, and other related notices and orders. The petitioner argued for the issuance of writs to quash the penalty order and related notices, and for the release of the detained truck and goods, asserting illegality and lack of jurisdiction in the actions of the respondent authorities. The petitioner sought to reserve these issues for agitation before the appropriate authority. The respondents argued that the petitioner possessed an alternative statutory remedy under the Bihar Goods and Services Tax Act, 2017, and highlighted that the petitioner had initially approached Respondent No. 2 before filing the writ petition, only to inform Respondent No. 2 about the High Court challenge when further documents were requested.