Kishan Cement Stores Vs State of Bihar (Patna High Court)
GST Detention Proceedings Held Concluded After Voluntary Payment of Tax and Penalty; Patna HC Refuses Relief Where Taxpayer Bypassed Statutory GST Appeal Mechanism; GST Penalty Challenge Rejected Because Goods Were Released After Taxpayer Accepted Demand; Patna HC Declines Refund of GST Penalty Paid During Goods Detention Proceedings.
The petitioner filed a writ application before the Patna High Court seeking quashing of a Summary of Show Cause Notice for penalty in Form GST DRC-01 and Show Cause Notice in Form GST MOV-07 dated 13.10.2025 issued under the CGST/BGST Act, 2017. The petitioner contended that the notices were issued without granting an opportunity of hearing under Section 129(4) of the Act and were therefore violative of principles of natural justice.
The petitioner also argued that the detained goods were accompanied by a valid tax invoice and E-way bill, which had expired during transportation due to a technical snag in the vehicle. It was contended that there was no intention to evade tax and that the E-way bill could not be extended in time because the vehicle was already in transit. The petitioner further sought refund of the penalty amount of Rs.2,00,090/- paid under the CGST/BGST Act along with interest, claiming that the payment had been made under duress because the goods were urgently required for business purposes.
