Case Details: Shubhankar Om Deo Construction Pvt. Ltd. Versus State of Bihar (2025) 28 Centax 151 (Pat.)
Judiciary and Counsel Details
- Rajeev Ranjan Prasad & Ramesh Chand Malviya, JJ.
- Shri Dhananjay Mishra, Adv. for the Petitioner.
- Shri Vikas Kumar, SC for the Respondent.
Facts of the Case
The petitioner, engaged in works contracts, faced cancellation of its GST registration due to non-payment of taxes during the COVID-19 period. While the petitioner did not dispute the tax demand, financial constraints prevented timely payment. Consequently, the respondent department cancelled the GST registration, which was later upheld by the High Court on grounds of non-compliance with tax obligations. The petitioner then filed a writ application requesting the department to accept the disputed tax amount, along with interest and penalty, relying on Circular No. 238/32/2024-GST dated 15-10-2024. The respondent department, in its counter affidavit, clarified that the circular applied only to financial years 2017-18, 2018-19, and 2019-20, whereas the petitioner’s case pertained to 2021-22. It was further submitted that the writ application effectively sought to appeal or review the High Court’s prior decision. The petitioner did not contest the department’s position through a reply affidavit.
High Court Held
The Hon’ble High Court determined that although the said circular was not applicable to the petitioner’s case, the department was required to accept payments toward outstanding tax liabilities, including interest and penalties, irrespective of the petitioner’s GST registration status. As the petitioner was willing to discharge all dues, the court disposed of the writ application with a directive to the department to accept the payment in satisfaction of the petitioner’s tax liability.
List of Circulars Cited
- Circular No. 238/32/2024 GST dated 15.10.2024.
