Bina Devi vs. The State Of Bihar
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The petitioner, Bina Devi, filed a writ petition before the Patna High Court challenging a notice dated February 17, 2025, issued by the Joint Commissioner of State Tax, Munger Circle, under Section 79(1)(C) of the Bihar Goods & Service Tax Act, 2017. This notice led to her bank account (Account No. 0141101022673 in Canara Bank) being placed on hold. The action was taken to recover an alleged GST tax liability for the financial year 2020-2021, amounting to Rs. 30,24,745/-. The petitioner sought to set aside the notice and direct the removal of the hold on her bank account. The respondents, including the State of Bihar and the Union of India, were involved in the recovery proceedings.
Held
The Court noted that the petitioner had not assailed the order determining the sum of Rs. 30,24,745/- before the appropriate forum. Therefore, the petitioner was granted liberty to invoke the remedy before the appropriate forum to challenge the order determining this amount. In the interim, to avoid further action, the petitioner was permitted to furnish a bank guarantee for the disputed amount of Rs. 30,24,745/- before the concerned authority. If the bank guarantee was furnished within six weeks, the impugned action of holding the bank account would stand dispensed with. The Court did not decide on the validity of the notice itself, but rather provided a procedural path for resolution.
Key Issues
1. Whether the notice dated February 17, 2025, issued under Section 79(1)(C) of the Bihar Goods & Service Tax Act, 2017, for holding the petitioner's bank account is valid, considering the petitioner has not assailed the order determining the tax liability of Rs. 30,24,745/- before the appropriate forum? (Question of law and mixed fact and law) Petitioner's Contention: The petitioner sought to set aside the notice and lift the hold on her bank account, implying a challenge to the legality of the recovery action without a properly assailed underlying order. The petitioner's prayer for other reliefs suggests a broader challenge to the process. Revenue/State's Contention: The respondents proceeded to recover the sum of Rs. 30,24,745/- towards arrears of tax, penalty, and damages, and took the impugned action due to the petitioner's non-compliance with the order determining this amount. The judgment notes that the petitioner has not assailed this order.
Sections Cited
Section 79(1)(C)
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER (Per: HONOURABLE MR. JUSTICE P. B. BAJANTHRI) 2 01-07-2025 In the instant petition, petitioner has prayed for following relief(s) :- “(a) For issuance of an appropriate writ/writs, order/orders to set aside notice contained in Memo No. 10 RCO/24-25 dated 17-02-2025 issued u/s 79(1)(C of Bihar Goods & Service Tax, 2017 by the Joint Commissioner Service Tax, Munger Circle, Munger whereby petitioner saving Bank Account No. 0141101022673 in Canara Bank kept on hold in connection with GST tax liability of financial year 2020-2021. 2/3 (b) for direction to remove hold on the petitioner Bank Account No. 0141101022673 maintain in the Canara Bank at Kali Ttazia Road, Bekapur, Munger which was kept on hold wide REF.Hold/sb- 0141101022673 dated 21-03-2025 issued by the Senior Manager, Canara Bank branch Munger. (c) And for any other reliefs/reliefs for which the petitioners are found to be entitled under the provision of law involved in the present case.”
Respondents have proceeded to recover a sum of Rs. 30,24,745/- (Thirty lakh twenty four thousand seven hundred forty five rupees) towards arrears of tax, penalty and damages from the petitioner. In not complying the order, the respondent have taken impugned action. It is learnt that petitioner has not assailed the order determining a sum of Rs. 30,24,745/- (Thirty lakh twenty four thousand seven hundred forty five rupees) before the appropriate forum as on this day. Therefore, he is at liberty to invoke remedy before the appropriate forum insofar as challenge to the order determining a sum of Rs. 30,24,745/- (Thirty lakh twenty four thousand seven hundred forty five rupees). In the 3/3 meanwhile, petitioners are permitted to furnish bank guarantee for the amount of Rs. 30,24,745/- (Thirty lakh twenty four thousand seven hundred forty five rupees) before the concerned authority to avoid further action like the impugned action. If the bank guarantee is furnished within a period of six weeks, in that event, the impugned action of the respondent in the present Writ Petition stands dispensed.
Accordingly, present CWJC No. 7772 of 2025 stands disposed of.
Nirajkrs/- (P. B. Bajanthri, J) ( S. B. Pd. Singh, 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.