M/S Powertech Engineers, a partneship firm Vs The State… — GST and Indirect Tax | Patna HC (2026)

M/S Powertech Engineers, a partneship firm Vs The State… — GST and Indirect Tax | Patna HC (2026)

What the court decided

AI extract

Outcome

Liberty to withdraw the writ application and prefer a Second Appeal within 60 days; coercive recovery of the impugned demand restrained provided the petitioner completes a cumulative deposit of 20% of the impugned demand (inclusive of the 10% already deposited with the Appellate Authority); appeal, if preferred, expected to be taken up promptly once the Tribunal begins functioning.

Issue for consideration

Whether the petitioner may be permitted to withdraw the writ application challenging the impugned tax demand, with liberty to prefer a Second Appeal under Section 112(1) of the CGST/BGST Act, 2017, and interim protection against coercive recovery.

Court's answer

The writ application is permitted to be withdrawn with liberty to prefer a Second Appeal within a period of 60 days from the date of the order.

Ratio / Principle

Interim restraint on recovery: if the petitioner deposits a cumulative 20% of the impugned demand (the 10% already deposited with the Appellate Authority counting towards it), the respondent authority shall not take any coercive action to realise the impugned demand.

Key takeaways

The Tribunal has been constituted and is likely to start functioning very soon; once it starts functioning, the appeal, if preferred by the petitioner, is expected to be taken up for consideration immediately.obiter¶¶25

Detailed headnote1 paragraphs

Patna High Court, Civil Writ Jurisdiction Case No.3227 of 2026 (oral order dt. 19-06-2026; bench: Hon'ble Rajeev Ranjan Prasad and Kumar Manish, JJ; per Rajeev Ranjan Prasad, J) - M/S Powertech Engineers v. State of Bihar and others: At the threshold, after partial arguments, the writ petition challenging an impugned GST tax demand was permitted to be withdrawn with liberty to prefer a Second Appeal under Section 112(1) of the Central Goods and Services Tax/Bihar Goods and Services Tax Act, 2017 within 60 days. Interim protection was granted restraining coercive recovery of the impugned demand, conditional on the petitioner depositing a cumulative 20% thereof (10% already deposited with the Appellate Authority). The Court recorded that the Tribunal had been constituted and was expected to begin functioning shortly, and that any appeal preferred should then be taken up for consideration.

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.3227 of 2026

======================================================

M/S Powertech Engineers, A partneship firm having registered under Indian Partnership Act and its registered office at - 1st Floor, U/454 Lohiya Nagar, Post Office and Police Station - Kankarbagh, Patna - 800020 through its partner- Mayoor Ahuja, Gender- male, aged about - 35 years, Son of - Shri Rakesh Ahuja, Resident of - B- 489, New Friends Colony, Defence Colony, South Delhi- 1100025.

... ... Petitioner/s

Versus

The State of Bihar through Commissioner of State Tax, Vikash Bhawan, Baily Road, Patna.

The Commissioner of Goods and Service Tax, Annexe Building, Veerchand Patel Path, Patna, Bihar.

The Additional Commissioner Appeal, State Tax, West Division, Patna.

The Joint Commissioner, State Tax, Department of Commercial Tax, Bihar, Patna.

The Assistant Commissioner, Audit State Tax, Patna, Bihar.

The Assistant Commissioner, State Tax, Patna Circle 2, South, Patna.

... ... Respondent/s

======================================================

Appearance : For the Petitioner/s : Mr. Krishna Mohan Mishra, Adv. Mr. Prasoon Kumar, Adv. For the Respondent/s : Mr. Vivek Prasad, GP-7 Ms. Roona AC to GP-7 Mr. Sanjay Kumar, AC to GP-7

====================================================== CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD and HONOURABLE MR. JUSTICE KUMAR MANISH ORAL ORDER

(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)

2 19-06-2026 Heard the learned counsel for the petitioner and

learned G.P.-7 for the State.

2 . After some arguments, learned counsel for the

petitioner submits that he may be allowed to withdraw this writ application with liberty to prefer Second Appeal as provided

Patna High Court CWJC No.3227 of 2026(2) dt.19-06-2026 2/2

under Section 112 (1) of the Central Goods and Services Tax/Bihar Goods and Services Tax Act, 2017.

3 . Learned G.P.-7 has no objection to the same.

4 . In the circumstances, we allow learned counsel for the petitioner to withdraw the writ application with liberty to prefer the Second Appeal within a period of 60 days from today.

5. This Court has been informed that the Tribunal has already been constituted and it is likely to start functioning very soon. We expect that immediately after the Tribunal starts functioning, the appeal, if any, preferred by the petitioner be taken up for consideration.

6 . In the meantime, if the petitioner deposits total 20% of the impugned demand (10% already deposited with the Appellate Authority), the respondent authority shall not take any coercive action against the petitioner to realise the impugned demand.

7. This writ application stands disposed of

accordingly.

(Rajeev Ranjan Prasad, J)

( Kumar Manish, J)

Abhishek/- U