M/S Jagdamba Enterprises vs. Union Of INDIA - Patna High Court, 01 September 2026

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.3487 of 2026 ====================================================== M/s Jagdamba Enterprises a proprietary concern having its office at Vill- Alpura, Ward No. 12, Tajpur, Madhubani, Bihar- 847109 through its authorized signatory Babu Narayan Jha (Male, aged about 66 years) son of Late Nav Kant Jha, resident of Vill- Alpura, Ward No. 12, Tajpur, Madhubani, Bihar - 847109. ... ... Petitioner/s Versus 1. Union of India through the Secretary, Finance, North Block, New Delhi- 110001. 2. Central Board of Indirect Taxes and Customs through its Secretary having its office at 47 B, CBIC, Department of Revenue, North Block, New Delhi 110001. 3. State of Bihar through Commissioner of State Tax, Bihar, Patna having its office at Vikas Bhawan, Patna. 4. Asst. Commissioner of State Tax, Jhanjharpur, Darbhanga, Bihar. 5. The Commissioner, CGST and Central Excise Commissonerate-II, Patna. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. D.V. Pathy, Sr. Adv. Mr. Sadashiv Tiwari, Adv. Ms. Shivani Dewalla, Adv. Mr. Hiresh Karan, Adv. For the State : Mr. Ravish Chandra, Adv., A.C. to SC-11 For the Union of India : Mr. Sriram Krishna, Adv., Sr. SC, CGST Mr. Devansh Shankar Singh, Adv., Jr. SC, CGST ====================================================== CORAM: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA and HONOURABLE MR. JUSTICE VIKASH KUMAR

ORAL ORDER (Per: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA) 6 01-09-2026

The present writ application has been filed for setting aside the order dated 21.03.2024 passed by the Adjudicating Authority whereby a demand amounting to Rs. 48,85,096.00/- was created against the petitioner for the financial year 2018-19 under Section 73 (9) of the GST Act.

The petitioner is registered with Jhanjharpur circle of the Commercial Tax Department and filed its return for the 2/4 GST period 2018-19. Subsequently, the respondent authority came to know that the petitioner availed huge input tax credit to the tune of Rs. 26,43,450.36/- in excess of its eligibility as per GSTR-2A. On the basis of this discrepancy, the respondent / Adjudicating Authority served a show cause notice dated 16.12.2023 under Section 73 of the GST Act, 2017 upon the petitioner. The petitioner did not respond to the notice which resulted in creation of the tax demand of Rs. 48,85,096.00/- comprising tax, interest and penalty vide order dated 21.03.2024. The assessment order was not assailed by the petitioner before the Appellate Authority.

Mr. D. V. Pathy, learned Senior Counsel for the petitioner submits that the show cause notice as well as the detailed order passed by the Adjudicating Authority does not disclose the reason for raising the huge demand on the ground of discrepancy on part of the petitioner in availing excess input tax credit. The detailed order passed by the respondent authority does not assign any reason and the same is non-speaking and cryptic. The order only records that the petitioner did not file any reply as such he confirmed the amount mentioned in Form GST DRC-01 and directed for issuance of summary of the demand order under Form GST DRC-07. It has also been 3/4 pointed out by learned Senior Counsel that auto-populated data having tax liability and ITC summary takes into account the negative credits not concerning the petitioner.

On the other hand, learned counsel for the State submits that detailed order has been passed by respondent / Adjudicating Authority and he does not have any instruction on the ITC summary annexed along with the rejoinder filed by the petitioner.

We have heard learned counsel for the parties and have gone through the impugned order. From perusal of the order dated 21.03.2024, it appears that the Adjudicating Authority has not assigned any reason and has passed non-speaking order only saying that the petitioner has not submitted any reply to the show cause notice and directed for issuance of summary of the demand order in Form GST DRC-07 on the basis of Form GST DRC-01. The order does not reflect any material to show on the basis of some enquiry conducted by the authority, in order to arrive at the conclusion that the petitioner has really availed the excess input tax credit.

Considering the aforesaid defect in the order, we are inclined to interfere with the order dated 21.03.2024. Accordingly, the impugned order dated 21.03.2024 is hereby set 4/4 aside. The matter is remanded back to the Adjudicating Authority to undertake fresh steps for passing fresh order after providing adequate opportunity of hearing to the petitioner.

The petitioner is directed to produce the copy of the order upon Respondent No. 04 within two weeks and after receipt of the order, the Respondent No. 04 shall fix a date for filing detailed objection / reply by the petitioner and thereafter respondent authority shall fix further date for personal hearing to the petitioner / his representative and shall pass detailed order giving reasons within a total period of two months.

With aforesaid direction and observation, this writ application is disposed.

Aayan/- (Anil Kumar Sinha, J) ( Vikash Kumar, J) U