M/S Bhardwaj Construction vs Union Of India on 6 July, 2026

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    Patna High Court – Orders

    M/S Bhardwaj Construction vs Union Of India on 6 July, 2026

    Author: Rajeev Ranjan Prasad

    Bench: Rajeev Ranjan Prasad

                          IN THE HIGH COURT OF JUDICATURE AT PATNA
                                    Civil Writ Jurisdiction Case No.4763 of 2026
                     ======================================================
                     M/s Bhardwaj Construction through its Partner Kamlesh Kumar, aged about
                     48 Years, (Male) Son of Ramashrary Singh, Resident of 286, AP Colony, P.S.-
                     Rampur, District- Gaya Ji.
                                                                                 ... ... Petitioner
                                                        Versus
               1.     Union of India through the Principle Secretary, Ministry of Finance
                      (Department of Revenue) Government of India, New Delhi.
               2.    The Principal Secretary, Department of Finance, Government of India New
                     Delhi.
               3.    The State of Bihar through its Additional Chief Secretary, Department of
                     Finance Government of Bihar, Patna.
               4.    The Additional Chief Secretary, Department of Finance, Government of
                     Bihar, Patna.
               5.    The Commissioner, State Tax, Magadh Circle, Gaya Ji.
               6.    The Additional Commissioner (Appeal) State Tax, Magadh Division, Gaya
                     Ji.
               7.    The Joint Commissioner, State Tax, Gaya Ji.
               8.    The Assistant Commissioner State Tax, Gaya Ji.
                                                               ... ... Respondents
                     ======================================================
                     Appearance :
                     For the Petitioner/s   :      Mr. Sanjeev Kumar, Advocate
                                                   Mr. Priya Ranjan, Advocate
                                                   Ms. Sakshi Kumari, Advocate
                     For the State          :      Mr. Vivek Prasad, Advocate, GP 7
                     For Union of India     :      Mr. Amit Pandey, Advocate
                     For the CGST           :      Ms. Ruchi Mandal, Advocate
                     ======================================================
                     CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
                             and
                             HONOURABLE MR. JUSTICE KUMAR MANISH
                                           ORAL ORDER
    
                     (Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)
    
    2   06-07-2026

    Heard learned counsel for the parties.

    2. The grievance of the petitioner is against the order

    SPONSORED

    as contained in Annexure- P/2 passed under Section 73 of the

    Bihar Goods and Services Tax Act, 2017 (in short ‘BGST Act’).

    It is submitted that the credit taken by the petitioner of the tax
    Patna High Court CWJC No.4763 of 2026(2) dt.06-07-2026
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    invoices/ debit notes were disallowed on the ground that the

    availment of the tax invoices/ debit notes were beyond the

    prescribed period/ extended period prescribed under Section

    16(4) of the BGST Act.

    3. Learned counsel for the petitioner submits that

    although Annexure P/2 was passed sometime on 06.03.2020 but

    the recovery has been made at this stage. The petitioner has

    drawn the attention of this Court towards circular no.

    237/31/2024-GST dated 15th October, 2024 issued by the

    Government of India in Ministry of Finance, Department of

    Revenue, Central Board of Indirect Taxes and Customs GST

    Policy Wing. It is submitted that by this circular, clarifications

    have been given to with regard to the implementation of the

    provisions of sub-Section (5) and sub-Section (6) of Section 16

    of the Central Goods and Services Tax Act, 2017 (in short

    CGST Act‘). According to the circular, sub-Section (5) and sub-

    Section (6) of Section 16 of the CGST Act have been inserted in

    Section 16 of the CGST Act with effect from the 1 st day of July,

    2017, vide Section 118 of the Finance (2) Act, 2024 whereby the

    time limit to avail input tax credit under provisions of sub-

    Section (4) of Section 16 of the CGST Act has been

    retrospectively extended in certain specified cases.
    Patna High Court CWJC No.4763 of 2026(2) dt.06-07-2026
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    4. Learned counsel submits that the case of the

    petitioner would be covered under the retrospectively extended

    time limit. It is, thus, submitted that the order, as contained in

    Annexure P/2, is fit to be quashed and the amount recovered

    from the petitioner be refunded to the petitioner with statutory

    interest.

    5. Mr. Vivek Prasad, learned GP 7 represents the

    State. Referring to the same circular, learned GP 7 points out

    Paragraph ‘3.5’ which reads as under:-

    “where order under section 73 or
    section 74 of the CGST Act has been issued
    but no appeal against the said order has been
    filed with the Appellate Authority, or where
    the order under section 107 or section 108 of
    the CGST Act has been issued by the
    Appellate Authority or the Revisional
    Authority but no appeal against the said
    order has been filed with the Appellate
    Tribunal:

    In such cases, where any order
    under section 73 or section 74 or section 107
    or section 108 of the CGST Act has been
    issued confirming demand for wrong
    availment of input tax credit on account of
    contravention of provisions of sub-section (4)
    of section 16 of the CGST Act, but where such
    input tax credit is now available as per the
    Patna High Court CWJC No.4763 of 2026(2) dt.06-07-2026
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    provisions of sub-section (5) or sub-section
    (6) of section 16 of the CGST Act, and where
    appeal against the said order has not been
    filed, the concerned taxpayer may apply for
    rectification of such order under the special
    procedure under section 148 of the CGST Act
    notified vide Notification No. 22/2024-

    Central tax dated 08.10.2024, within a period
    of six months from the date of issuance of the
    said notification.”

    6. Under Paragraph 3.5.1 to Paragraph 3.5.5, the

    procedures for filing of an application for rectification of an

    order issued under Section 73 or Section 74 of the CGST Act

    have been provided. It is his submission that instead of filing an

    application for rectification before the competent authority,

    petitioner has chosen to prefer a writ application. It is further

    submitted that this Court sitting in its writ jurisdiction need not

    examine as to whether the case of the petitioner would fall

    within the specified cases which would be covered under the

    retrospectively extended time limit.

    7. Having regard to the entire facts and circumstances,

    the pleadings available on the record and the submissions of

    learned counsel for the parties, we are of the considered opinion

    that the contentions of the petitioner may be examined by the

    competent authority, if the petitioner prefers an application
    Patna High Court CWJC No.4763 of 2026(2) dt.06-07-2026
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    seeking rectification as provided under Paragraph 3.5 of the

    circular (Annexure P/1).

    8. We grant liberty to the petitioner to file a

    rectification application within one month from today before the

    competent authority. If such an application is preferred within

    the given period, the competent authority shall examine the

    application, give an opportunity of hearing to the petitioner and

    pass an appropriate order in accordance with law within a period

    of three months from the date of filing of the rectification

    application.

    9. This writ application stands disposed of

    accordingly.

    (Rajeev Ranjan Prasad, J)

    (Kumar Manish, J)
    ritwika/-ranjeet

    U



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