The State of Bihar through the Commissioner of State Tax vs Kaushlendra Kumar

Court
Patna High Court

IN THE HIGH COURT OF JUDICATURE AT PATNA
CIVIL REVIEW No.187 of 2025
In
Civil Writ Jurisdiction Case No.17860 of 2024
CNR No. BRHC010733652025
======================================================
1. The State of Bihar through the Commissioner of State Tax Patna.
2. The Assistant Commissioner of State Tax, Jehanabad, Magadh, Bihar.
3. The Additional Commissioner of State Tax, Magadh Division, Gaya, Bihar.
... ... Petitioner/s
Versus
1. Kaushlendra Kumar a Proprietorship firm having its office at Bazar Samiti,
Raja Bajar, Jehanabad, Bihar- 804408 through its Proprietor Kaushlendra
Kumar, an adult male,aged about 40 years, son of Madan Sharma, Bazar
Samiti, Raja Bazar, Jehanabad, Bihar, 804408.

st
..Petitioner/Respondent 1 Set/O.P.
2. The Deputy General Manager of Bihar State Building Construction
Corporation Limited, PIU, Gaya.

nd
...Respondent/Respondent 2 Set/O.P.
... ... Opposite Party/s
======================================================
Appearance :
For the Petitioner/s : Mr.Ravish Chandra, A.C. to AAG-5
For the Opposite Party/s : Mr.Rudra Pratap Singh, Advocate
======================================================
CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
and
HONOURABLE MR. JUSTICE RAJESH KUMAR VERMA
ORAL JUDGMENT
(Per: HONOURABLE MR. JUSTICE RAJESH KUMAR VERMA)
Date : 27-10-2026

Heard learned counsel for the parties.
2. The present civil review petition has been filed
seeking review of the judgment dated 01.05.2025 passed in CWJC
No.17860 of 2024 whereby and whereunder the Hon’ble Court

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was pleased to set aside the impugned order contained in
Annexure-P1, i.e. the order passed by the appellate authority, dated
30.11.2022 and consequential recovery and the matter was
remanded to the appellate authority for a fresh consideration. The
Hon’ble Court was further pleased to direct the respondent
authorities (petitioners herein) to refund the recovered amount of
Rs. 50,75,214/- (Rupees Fifty Lacs Seventy Five Thousand Two
st
Hundred Fourteen) to the writ petitioner (respondents 1 set
herein) within a period of two weeks from the date of judgment,
failing which interest shall run at the rate of 12% per annum. The
Hon’ble Court further directed the respondents (petitioners herein)
to pay simple interest at the rate of 6% per annum on the amount
recovered from the writ petitioner (respondent No.1) from the date
of recovery till the date of refund.
3. Learned counsel for the petitioners submits that
despite due diligence, the provisions of Section 150 of the Finance
(No.2) Act, 2024 was not brought to the notice of the Hon’ble
Court and in absence of proper assistance the Hon’ble Court has
been pleased to set aside the impugned order as mentioned
aforesaid. Section 150 of the Finance (No.2) Act, 2024 is
reproduced hereinbelow:

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“150. No refund shall be made of all the
tax paid or the input tax credit reversed,
which would not have been so paid, or
not reversed, had Section 118 been in
force at all material times ”.
4. Apart from the aforesaid, Section 118 of the Finance
(No.2) Act, 2024 is quoted hereinbelow:
“ 118 . In section 16 of the Central Goods
and Services Tax Act, with effect from the
1st day of July, 2017, after sub-section (4),
the following sub-sections shall be
inserted, namely:––
“(5) Notwithstanding anything contained
in sub-section (4), in respect of an invoice
or debit note for supply of goods or
services or both pertaining to the
Financial Years 2017-18, 2018-19, 2019-
20 and 2020-21, the registered person
shall be entitled to take input tax credit in
any return under section 39 which is filed
upto the thirtieth day of November, 2021.

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(6) Where registration of a registered
person is cancelled under section 29 and
subsequently the cancellation of
registration is revoked by any order, either
under section 30 or pursuant to any order
made by the Appellate Authority or the
Appellate Tribunal or court and where
availment of input tax credit in respect of
an invoice or debit note was not restricted
under sub-section (4) on the date of order
of cancellation of registration, the said
person shall be entitled to take the input
tax credit in respect of such invoice or
debit note for supply of goods or services
or both, in a return under section 39,––
(i) filed upto thirtieth day of November
following the financial year to which such
invoice or debit note pertains or
furnishing of the relevant annual return,
whichever is earlier; or
(ii) for the period from the date of
cancellation of registration or the effective

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date of cancellation of registration, as the
case may be, till the date of order of
revocation of cancellation of registration,
where such return is filed within thirty
days from the date of order of revocation
of cancellation of registration, whichever
is later.”.
5. Learned counsel for the petitioners further submits
that the State Legislature of Bihar had also passed a corresponding
amendment to the Bihar Goods and Services Tax Act, 2017,
namely, the Bihar Goods and Services Tax (Second Amendment)
Act, 2024 (Bihar Act 22, 2024), which was published in the
Official Gazette of the Bihar on 09.12.2024. The provisions of the
said Act were similar/identical to those of the Finance Act (No.2)
of 2024, enacted by Central Legislature, and they came into force
from the same dates.
6. Having heard learned counsel for the parties and upon
perusal the material available on the record, as well as provisions
of Section 118 and 150 of the Finance (No.2) Act, 2024, it appears
that Section 118 of the said Act inserted Sub-sections (5) and (6)
after sub-section (4) of Section 16 of the Central Goods and

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Services Tax Act, 2017 with effect from 01.07.2017. Further
Section 150 of the Finance (No.2) Act, 2024 provides that “ No
refund shall be made of all the tax paid or the input tax credit
reversed, which would not have been so paid, or not reversed, had
Section 118 been in force at all material times ”. Although the
aforesaid provisions were brought into force vide S.O.-4253(E)
dated 27.09.2024, a conjoint reading of Section 118 and 150 of the
Finance (No.2) Act, 2024 indicates the amendment under Section
118 has been given effect from 01.07.2017. In the facts of the
present case, process for recovery was initiated by issuance of
notice in DRC-13 on 29.12.2022 which was recovered and
deposited by Bihar State Building Construction Corporation Ltd.
vide letter No.50 dated 09.07.2023.
7. Considering the aforesaid facts, the Appellate
Authority is directed to consider the aforesaid relevant provisions
while deciding the appeal pending before it. So far as the claim for
refund of the recovered amount of Rs. 50,75,214/- (Rupees Fifty
Lacs Seventy Five Thousand Two Hundred Fourteen) is
concerned, the same shall abide by the final outcome of the
aforesaid appeal.
8. Accordingly, the present civil review application
stands allowed to the extent indicated above.

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9. Pending application (s), if any, shall also stand
disposed of.
(Sudhir Singh, J)
( Rajesh Kumar Verma, J)
Nitesh/-
AFR/NAFR NAFR
CAV DATE NA
Uploading Date 30.10.2026
Transmission Date NA