Sri Mant Kala Sanchar Sanskritik Dal Vs State of Bihar (Patna High Court)
Summary: The Patna High Court considered a writ petition filed by M/S Sri Mant Kala Sanchar Sanskritik Dal, a registered GST person engaged in conducting Nukkad Natak (street plays) for public awareness programmes primarily assigned by Government Departments. The petitioner challenged the Appellate Authority’s order dated 28.02.2026 in Appeal Case No. GST/PTC-2—2025-26 and the underlying demand dated 20.08.2025 raising tax, interest and penalty of Rs. 1,63,452/-.
The dispute arose for the financial year 2022-23. A notice had been issued against the petitioner under Section 73 of the CGST Act, 2017 on the basis of gross receipts of Rs. 4,98,100/- received from the District Public Relations Officer, Gaya. The Adjudicating Authority subsequently imposed a liability of tax, interest and penalty amounting to Rs. 1,63,452/- on 20.08.2025.
The petitioner thereafter filed an appeal under Section 107(1) of the CGST Act, 2017. The appeal was dismissed on 28.02.2026 because it was filed with a delay of 21 days. The petitioner, however, relied upon a subsequent memo issued by the Collectorate, Gaya, Memo No. 322 dated 28.11.2025. According to the petitioner, that communication stated that GST was not applicable to receipts against sale of tickets by a registered person engaged in the profession of Nukkad Natak and that Nukkad Natak teams comprising (4-6-8-10) members were exempted from the GST regime.
Before the High Court, the petitioner therefore contended that the underlying issue was not merely the delay in filing the appeal but whether the petitioner, being a registered person performing Nukkad Natak, was exempt from GST liability. The State opposed the petition on limitation grounds, submitting that the Appellate Authority had rightly dismissed the appeal after expiry of the statutory period by 21 days. It was also submitted that the alleged exemption communication had been issued by the District Public Relation Officer, Gaya, and did not identify the statutory provision or any decision of the GST Council under which the Nukkad Natak team was claimed to be exempt.
The High Court focused on the nature of the issue raised by the petitioner. It observed that the exemption question went to the root concerning the jurisdiction of the authority which had imposed the tax liability. The Court further noted that the Appellate Authority had dismissed the appeal as time barred instead of deciding the substantive exemption issue raised by the petitioner.
In these circumstances, the High Court held that the Appellate Authority must decide the petitioner’s contention that, as a registered person performing Nukkad Natak, it was exempted from GST liability. The Court accordingly set aside the appellate order dated 28.02.2026 and remitted the matter to the Appellate Authority for deciding the exemption issue in accordance with law within two months from receipt or production of the High Court’s order.
The writ petition was disposed of with further procedural directions. The petitioner was directed to produce a copy of the High Court order and appear before the Appellate Authority for fixing the hearing date within one week. Upon production of the order, the Appellate Authority was directed to fix the hearing and dispose of the appeal after granting personal hearing to the petitioner within a maximum period of two months.
The judgment therefore does not finally determine that Nukkad Natak is exempt from GST. Instead, the High Court set aside the dismissal on limitation and required the competent Appellate Authority to examine and decide the exemption claim in accordance with law.
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
2. The present writ application has been filed challenging the order dated 28.02.2026, passed by the Appellate Authority in Appeal Case No. GST/PTC-2—2025-26 and letter of demand dated 20.08.2025 of the tax/interest/penalty amount of Rs. 1,63,452/-.
3. The petitioner is engaged in conducting Nukkad Natak (street plays) for public awareness programme primarily assigned by the Government Departments. The petitioner is registered under GST regime.
4. Learned counsel for the petitioner submits that a notice was issued under Section 73 of GST against petitioner for the financial year 2022-23 on the basis of gross receipt of Rs. 4,98,100/-, received from the District Public Relations Officer, Gaya and the order has been passed by the Adjudicating Authority on 20.08.2025, imposing a liability of tax/interest/penalty against the petitioner to the extent of Rs. 1,63,452/-. An appeal filed by the petitioner under Section 107(1) has been dismissed on 28.02.2026 on the ground of delay of 21 days.
5. Learned counsel for the petitioner submits that Collectorate, Gaya has issued a memo no. 322 dated 28.11.2025 to the effect that GST is not applicable on the receipt against sale of ticket by the registered person in the profession of Nukkad Natak. The Nukkad Natak as per the letter dated 28.11.2025 issued by the Collectorate, Gaya under the signature of District Public Relation Officer, Gaya, dated 28.11.2025, (4-6-8-10) members of the Nukkad Natak team is exempted from the GST regime.
6. On the other hand, learned counsel for the State submits that the petitioner has filed the appeal after expiry of the statutory period of limitation and the Appellate Authority has rightly dismissed the appeal on the ground of delay of 21 days. He further submits that exemption order has been issued by the District Public Relation Officer, Gaya and in that order, nothing has been quoted to say that under which provision of law or the decision of the GST council the Nukkad Natak team is exempted from GST.
7. Considering the submissions made by the parties and the fact that the issue goes to the root concerning the jurisdiction of the authority, who imposed tax liability and the Appellate Authority instead of deciding the issue on merit, has dismissed the appeal as time barred. Accordingly, we are of opinion that Appellate Authority must decide the issue raised by the petitioner that petitioner being registered person performing Nukkad Natak is exempted from GST liability.
8. As a result, the appellate order dated 28.02.2026, passed by Appellate Authority is set aside. The matter is remitted back to Appellate Authority to decide the issue of exemption raised by the petitioner in accordance with law within a period of two months from the date of receipt/production of a copy of this order.
9. With the aforesaid observation and direction, the writ petition is disposed of.
10. The petitioner shall produce the copy of the order passed by this Court and shall appear before the Appellate Authority for the purpose of fixing the date of hearing of appeal within a period of one week from today.
11. Upon production of copy of the order by the petitioner, the Appellate Authority shall fix the date for hearing and shall dispose the appeal after giving personal hearing to the petitioner within a maximum period of two months.
