M/S Singh Enterprises vs. The Union Of INDIA

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CWJC/18494/2025HC PatnaGSTCNR BRHC01111632202503 August 2026Bench: MR. JUSTICE ANIL KUMAR SINHA,MR. JUSTICE VIKASH KUMAR3 pages

AI SummaryRemanded

Facts

The petitioner, M/s Singh Enterprises, filed a writ application challenging an order dated 12.04.2024 passed by the Additional Commissioner of State Tax (Appeal), Muzaffarpur. This appellate order had rejected the petitioner's appeal and upheld the order of the Assistant Commissioner of State Tax, Sitamarhi, dated 24.12.2021. The original order directed the petitioner to pay Rs. 7,24,818.62 (comprising tax, interest, and penalty) for the financial year 2020-21. The petitioner contended that the entire demand had been paid in installments and that 10% of the disputed amount was paid at the time of filing the appeal. Despite full payment, the GST portal was not updated, leading to the petitioner's bank account being frozen, causing hardship.

Held

The Court held that the petitioner has a statutory remedy available by way of an appeal before the Appellate Tribunal, as provided under Section 112 of the BGST Act, and that the Tribunal has commenced functioning. Therefore, the writ application was disposed of with liberty to the petitioner to file an appeal before the Tribunal. The Court directed that if an appeal is filed, the Tribunal shall consider and decide it on merits in accordance with law, without raising any objection regarding the delay in filing the appeal. The Court did not decide on the merits of the petitioner's claim regarding the non-updating of the GST portal or the freezing of the bank account.

Key Issues

1. Whether the petitioner has exhausted all available statutory remedies under the CGST/BGST Act, 2017, given the functioning of the Appellate Tribunal? (Question of law) Petitioner's argument: The petitioner has paid the entire demand raised by the adjudicating authority and the appellate authority. The issue is the non-updating of the GST portal and the resulting freezing of the bank account, causing hardship. The petitioner has approached the High Court by way of a writ petition. Revenue's argument: The State submitted that there is a provision for filing an appeal before the Appellate Tribunal under Section 112 of the BGST Act, and the petitioner can avail this statutory remedy as the Tribunal has started functioning.

Sections Cited

Section 112

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.18494 of 2025 ====================================================== M/s Singh Enterprises represented through its Proprietor namely Rajkishor Singh @ Raj Kishor Singh, (Male) aged about 50 years Son of Rameshwar Singh, having its principal place of business at Ward-12, Dostpur Khadauli, Bariyarpur, Sitamarhi -843302, Bihar, Registered under the CGST/BGST Act, 2017, GSTIN- 10BRGPS0943C1ZA. ... ... Petitioner/s Versus 1. The Union of India through Secretary, Department of Revenue, Ministry of Finance, Government of India, New Delhi. 2. The Commissioner of CGST and Central Excise, Patna 3. The State of Bihar, through The Commissioner, State GST, Government of Bihar, Patna. 4. The Commissioner, State GST, Government of Bihar, Patna. 5. Joint Commissioner of State Tax, Dumra Circle, Sitamarhi 843301, Bihar. 6. Assistant Commissioner of State Tax, Sitamarhi Circle, Sitamarhi-843302, Bihar ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Somnath Bhardwaj For the UOI : Ms. Shilpi Keshri, Jr. S.C. CGST For the State : Mr. GP-07 ====================================================== CORAM: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA and HONOURABLE MR. JUSTICE VIKASH KUMAR

ORAL ORDER (Per: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA) 4 03-08-2026

The petitioner has filed the present writ application for setting aside the impugned order, dated 12.04.2024, passed by Appellate Authority - Additional Commissioner of State Tax (Appeal), Tirhut Division, Muzaffarpur, in appeal no. AD101022000628Y, by which the appeal of the petitioner has been rejected and order of Adjudicating Authority – Assistant Commissioner of State Tax, 2/3 Sitamarhi Cirlce, Sitamarhi, containing in Form GST DRC-07, dated 24.12.2021, has been upheld, wherein, the petitioner was directed to make payment of Rs. 7,24,818.62/- (tax – Rs. 5,94,434/-, interest – Rs. 70,941.22, penalty – Rs. 59,442/-) for the financial year 2020-21. 2. Learned counsel for the petitioner submits that the petitioner, a proprietorship firm engaged in the trading of goods, has already paid the entire demand raised vide order dated 24.12.2021 through various installments on different dates, as would be evident from Annexure-P/3, including deposit of 10% of the disputed amount at the time of filing of the appeal. He further submits that, despite compliance of the order, dated 24.12.2021, and payment of the entire demand amount, the GST portal has not been updated, resulting in the holding of the petitioner’s bank account causing hardship.

Learned counsel for the State submits that there is provision for filing appeal before the appellate tribunal under Section 112 of the BGST and the petitioner may avail the statutory remedy before the tribunal which has started functioning.

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Having regards to the submission made by the parties and taking into consideration the fact that the petitioner has remedy to file an appeal before the Appellate Tribunal, accordingly, the present writ application is disposed with liberty to the petitioner to file an appeal before the Tribunal within a period of two weeks.

It is made clear that if an appeal is filed by the petitioner before Tribunal, the Tribunal shall consider and decide the same on merits in accordance with law and without going into the question of delay.

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

Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.