Patna High Court
Rounak Int Udyog vs The State Of Bihar on 13 August, 2025
Author: P. B. Bajanthri
Bench: P. B. Bajanthri
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.7580 of 2025
======================================================
Rounak Int Udyog a proprietorship concern having its office at Rampur,
Basopatti, Madhubani, Bihar- 847225 through its Proprietor Shambhu Singh
(Male, aged about 40 Years) Son of Shri Shyam Nandan Singh, resident of
H.No.- 123, Ward No.- 14, Pachhwari Tola, Near School, Chatauni,
Madhubani, Bihar- 847225.
... ... Petitioner
Versus
1. The State of Bihar through the Commissioner of State Tax, Bihar, Patna
having its Office at Vikas Bhawan, Patna- 800001.
2. Asst. Commissioner of State Tax, Madhubani, Darbhanga, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Sadashiv Tiwari, Advocate
Mr. Hiresh Karan, Advocate
For the Respondent/s : Mr. Vikash Kumar, SC-11
======================================================
CORAM: HONOURABLE MR. JUSTICE P. B. BAJANTHRI
and
HONOURABLE JUSTICE SMT. G. ANUPAMA
CHAKRAVARTHY
ORAL JUDGMENT
(Per: HONOURABLE MR. JUSTICE P. B. BAJANTHRI)
Date : 13-08-2025
In the instant Writ petition, petitioner has prayed
for the following relief(s):-
“i) the order dated 06.12.2023 (as
contained in Annexure – P3 series) passed by the
respondent no.2 for the Tax Period 2021 – 22
under Section 73 of the Bihar Goods and Services
Tax Act, 2017 (hereinafter called the Act) merely
on the basis of estimation of sale on the basis of
purchase of coal without taking notice of the tax
invoice and the corresponding purchases shown in
the GST returns in absence of any statutory
provision enabling such estimate on mere
guesswork in absence of a supply of goods being in
Patna High Court CWJC No.7580 of 2025 dt.13-08-2025
2/3contravention of section 7 and 9 of the Act that too
without issue of notice under Section 75(4) of the
Act before passing an adverse order and also in
view the content of the show cause notice, the
subsequent notice and the order being the same
without consideration of the written
explanation/submission and also without
application of judicial mind and also being counter
to the settled principles of natural justice is wholly
illegal and without jurisdiction?
ii) the summary of the order in Form
GST DRC – 07 (as contained in Annexure – P3
series) quantifying the demand of tax, interest and
penalty for the Tax Period 2021 – 22 be set aside
and quashed.
iii) for granting any other relief (s) to
which the petitioner is otherwise found entitled to.”
2. Perusal of the records, it is evident that
Respondents before levying tax, interest, penalty insofar as
consumption of coal to produce bricks, no yardstick has been
taken note of to the extent what would be the quantum of coal
read with the production of bricks so as to draw inference that
petitioner had manipulated while generating Invoice read with
e-Way bill. For example for production of one ton of bricks, the
quantity of coal required typically ranges from 100 to 250
kilograms, proportionately production of bricks and purchase of
coal are to be read with relevant papers. This exercise has not
been under taken by the Respondents. In the light of these facts
Patna High Court CWJC No.7580 of 2025 dt.13-08-2025
3/3
and circumstances, the petitioner has made out a case so as to
interfere with the impugned decision of the Respondent.
Accordingly, it is set aside.
3. Respondents are hereby directed to take out
fresh necessary steps strictly in accordance with the technical
issue and also providing ample opportunity of hearing to the
petitioner. The above exercise shall be completed within a
period of six months from the date of receipt of this order.
Petitioner shall cooperate with the concerned official
Respondents.
4. Writ petition stands allowed.
(P. B. Bajanthri, J)
( G. Anupama Chakravarthy, J)
manish/-
AFR/NAFR NAFR CAV DATE NA Uploading Date 19.08.2025 Transmission Date NA