Vinay Pasi vs. The State Of Bihar

Facts

The petitioner, Vinay Pasi, filed a writ petition before the Patna High Court challenging orders (Annexures 7 and 8) passed by the Assistant Commissioner of State Tax, Bhabhua Circle. The petitioner sought directions to declare these orders illegal and without jurisdiction. He also sought a direction to the Assistant Commissioner to not pressurize the Bank of India for payment of GST and to ensure the Executive Engineer, Kamand Kshetra Vikash Pramandal, Bhabhua Kaimur, paid the full rate of GST on the works value, deducting only 2% TDS as per the agreement. The State submitted that the case was covered by a previous judgment in M/s Jai Bhawani Construction Vs. The Union of India and Ors. and a subsequent letter from the Engineer-in-Chief. The State had no objection to remanding the matter for fresh consideration.

Held

The Court disposed of the writ petition by directing Respondent No. 2, the Executive Engineer, Kamand Kshetra Vikash Pramandal, Bhabhua Kaimur, to consider and decide the petitioner's case. This decision was to be made in terms of the judgment and order dated 05.07.2019 in M/s Jai Bhawani Construction Vs. The Union of India and Ors. and letter No. 5405 dated 30.07.2019. The Court explicitly clarified that all issues of fact and law were left open for consideration by the Executive Engineer. The Court expressed hope that the Executive Engineer would decide the case expeditiously, preferably within four months from the date of receipt of the order. The operative direction was a remand to the Executive Engineer for fresh consideration.

Key Issues

1. Whether the orders contained in Annexures 7 and 8, passed by the Assistant Commissioner of State Tax, Bhabhua Circle, are illegal, void, and without jurisdiction, as contended by the petitioner? The petitioner argued that the Assistant Commissioner's actions were illegal and beyond his jurisdiction. The State contended that the matter was covered by the judgment in M/s Jai Bhawani Construction Vs. The Union of India and Ors. and letter No. 5405 dated 30.07.2019, and had no objection to a remand for reconsideration on merits. 2. Whether the Executive Engineer, Kamand Kshetra Vikash Pramandal, Bhabhua Kaimur, has failed to pay the full rate of GST, deducting only 2% TDS on the works value as per the agreement, as alleged by the petitioner? The petitioner sought a direction for the Executive Engineer to pay the full GST rate. The State's submission regarding the applicability of the cited judgment and letter implicitly addressed the GST payment issue, suggesting it should be considered by the appropriate authority.