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M/S Khushbu Devi v. The State of Bihar

Patna HC13 May 2026CWJC/16139/2025

Case brief

AI extract

What is this about?

GST assessment based on Form 26AS figures challenged in writ; Patna High Court granted liberty to pursue statutory appeal under Section 112 of the Bihar GST Act, 2017 and disposed of the writ petition without deciding merits; underlying demand involved alleged turnover suppression of Rs. 87,33,215/- and tax, interest, penalty under Section 73(9) BGST Act for FY 2017-18 (Saran/Chapra); no coercive-recovery restraint or other interim relief considered; no precedent cited or discussed.

What did the court decide?

Liberty to the petitioner to challenge the impugned order dated 02.06.2025 by availing the remedy under Section 112 of the Bihar Goods and Services Tax Act, 2017; no relief granted on merits and the prayers (including directions regarding Form 26AS, municipal payment details and restraint on coercive recovery) were not adjudicated.

M/S Khushbu Devi Vs The State of Bihar — GST and Indirect Tax | Patna HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the order dated 02.06.2025 of the Additional Commissioner of State Tax (Appeal) dismissing the petitioner's appeal, and the underlying adjudication order dated 29.12.2023 raising demand on the basis of Form 26AS figures, ought to be set aside/quashed. (Framed from the prayer clause; the court did not adjudicate this issue on merits.)

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Court's answer

Liberty is granted to the petitioner to challenge the impugned order dated 02.06.2025 by availing the statutory remedy under Section 112 of the Bihar Goods and Services Tax Act, 2017.

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Ratio / Principle

The writ petition stands disposed of in terms of the liberty granted, without adjudication on merits.

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Detailed headnote1 paragraphs

Patna High Court (Mohit Kumar Shah, J., for the Bench of Shah and Jha, JJ.), by order dated 13-05-2026, disposed of CWJC No.16139 of 2025 (M/S Khushbu Devi v. State of Bihar & Ors.) at the threshold. The writ petition sought setting aside of the order dated 02.06.2025 passed by the Additional Commissioner of State Tax (Appeal), Saran Division, Chapra in Appeal Case No. 148/2023-24, which had dismissed the petitioner's appeal and affirmed the adjudication order dated 29.12.2023 of the Joint Commissioner of State Tax, Saran Circle-2, Chapra — an order founded on a gross amount of Rs. 1,04,02,000/- allegedly reflected in Form 26AS for FY 2017-18 (against claimed actual gross income of Rs. 37,22,335/-), assuming turnover suppression of Rs. 87,33,215/- and imposing tax, interest and penalty under Section 73(9) of the BGST Act, 2017. At the outset, learned counsel for the petitioner sought liberty to challenge the impugned appellate order by availing the remedy under Section 112 of the Bihar Goods and Services Tax Act, 2017; liberty was granted and the writ petition was disposed of. No issue was decided on merits and no precedent was considered.

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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.16139 of 2025

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M/S Khushbu Devi through its Proprietor, Khushbu Devi, aged about 46 years (Female), W/o Ravindra Kumar Sharma, R/o Dahiyawan Tola, Chapra, P.S.Chapra Muffasil, District-Saran, Bihar-841301.

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... ... Petitioner/s

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Versus

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The State of Bihar through the Secretary, Department of Commercial Taxes, Bihar, Patna.

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The Additional Commissioner of State Tax (Appeal), Saran Division, Chapra.

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The Joint Commissioner of State Tax, Saran Circle-2, Chapra.

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The Municipal Commissioner, Municipal Corporation, Chapra.

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The Chief Commissioner of Income Tax, Bihar, Patna.

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The Income Tax Officer, ITO Ward-2(2), Chapra.

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... ... Respondent/s

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====================================================== Appearance : For the Petitioner/s : Mr. Pratiyush Kumar, Adv. Mr. Mukund Raj, Adv. For the Respondent/s : Mr. Government Pleader (07)

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CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH and HONOURABLE MR. JUSTICE ARUN KUMAR JHA

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ORAL ORDER

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(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)

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2 13-05-2026

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The present writ petition has been filed seeking the

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following reliefs:-

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(i)“For issuance of an appropriate writ/order/direction to set aside the order dated 02.06.2025 passed by the Learned Additional Commissioner of State Tax (Appeal), Saran Division, Chapra in Appeal Case No. 148/2023-24, whereby the Appeal preferred by the Petitioner was dismissed. affirming the order dated 29.12.2023 passed by the Joint Commissioner of State Tax, Saran Circle-2, Chapra, solely on the basis of a gross amount of Rs. 1,04,02,000/- allegedly

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Patna High Court CWJC No.16139 of 2025(2) dt.13-05-2026 2/3

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reflected in Form 26AS of the Income Tax Department for the Financial Year 2017-18, although the actual gross income of the Petitioner for the said financial year was only Rs. 37,22,335/-.

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(ii) For quashing the adjudication order dated 29.12.2023 passed by the Respondent No. 3 (Joint Commissioner. Saran Circle-2. Chapra), whereby suppression of turnover of Rs. 87,33,215/- was arbitrarily assumed on the basis of Form 26AS, and consequential tax, interest, and penalty were imposed under Section 73(9) of the BGST Act, 2017.

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(iii) For a direction upon the Respondent Income Tax Authorities to produce the relevant Form 26AS wherein an inflated figure of Rs. 1,04,02,000/- has been shown, and to make necessary correction in the said Form if the same has been erroneously reflected against the PAN of the Petitioner.

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(iv) For a direction upon the Respondent Municipal Commissioner, Municipal Corporation, Chapra produce the details of actual payments made to the Petitioner for the Financial Year 201718.

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(v) For a direction restraining the Respondent State Tax Authorities from taking any coercive steps for recovery of the disputed tax, interest and penalty amount during the pendency of the present writ petition.”

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At the outset, the learned counsel for the petitioner

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seeks liberty on behalf of the petitioner to challenge the impugned order dated 02.06.2025, passed by the learned Additional Commissioner (Appeal) of State Tax, Saran Division, Chapra by availing the remedy provided for under

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Patna High Court CWJC No.16139 of 2025(2) dt.13-05-2026 3/3

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Section 112 of the Bihar Goods and Services Tax Act, 2017.

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Liberty so sought is granted.

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