Mundeshwari Enterprises vs. The State Of Bihar

Facts

The petitioner, Mundeshwari Enterprises, through its proprietor Sunil Kumar Singh, filed a writ petition before the Patna High Court. The petitioner sought a declaration that the orders passed by Respondent No. 3, the Assistant Commissioner of State Tax, Bhabhua Circle, were illegal and without jurisdiction. The petitioner also sought directions to prevent the Assistant Commissioner from pressuring for GST payment and to compel the Executive Engineer, Sone Kamand Kshetra Vikash Agency, to pay the full rate of GST, alleging that only 2% TDS was deducted on works value as per the agreement. The State, through its counsel, 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.

Held

The Court disposed of the writ petition by remanding the matter to Respondent No. 2, the Executive Engineer, Sone Kamand Kshetra Vikash Agency, Bhabhua Kaimur, Bihar. The Executive Engineer was directed to consider and decide the petitioner's case in terms of the judgment and order dated 05.07.2019 passed in C.W.J.C. No. 1452 of 2019 (M/s Jai Bhawani Construction Vs. The Union of India and Ors.) and the letter No. 5405 dated 30.07.2019. The Court clarified that all issues of fact and law were left open for consideration by the authority. The Court expressed hope that the decision would be made expeditiously, preferably within four months from the date of receipt of the order. The Court did not make any specific findings on the legality of the Assistant Commissioner's orders or the correctness of the TDS deduction, leaving these to be decided by the Executive Engineer.

Key Issues

1. Whether the orders 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 authority. The State, however, did not directly address this issue but relied on a previous judgment and a letter issued by the Engineer-in-Chief. 2. Whether the Executive Engineer, Sone Kamand Kshetra Vikash Agency, has failed to pay the full rate of GST by deducting only 2% TDS on the works value, contrary to the agreement, as alleged by the petitioner? The petitioner contended that the deduction of TDS was incorrect and that the full GST rate should have been paid. The State indicated no objection to the matter being remanded for consideration on its merits.