Patna High Court
M/S Haque Construction Company vs The Union Of India on 29 July, 2025
Author: P. B. Bajanthri
Bench: P. B. Bajanthri, Alok Kumar Pandey
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.16147 of 2023
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M/s Haque Construction Company Having its Registered Office at - Sarai
Syid Ali Marg, Kaji Mohammadpur, P.S - Muzaffarpur Sadar, District -
Muzaffarpur through its Sole Proprietor Mr. Esrarul Haque, aged about 56
Years, S/o Abdus Salam.
... ... Petitioner
Versus
1. The Union of India through the Secretary, Ministry of Finance, Department
of Revenue, having its office at Room No. 46, North Block, P.O. and P.S.
North Block, New Delhi- 110001.
2. Commissioner, CGST and Central Excise, Patna- II Commissionerate, Patna
Office at 3rd to 5th Floor, Sanchar, Parishar, Budh Marg, Patna.
3. Superintendent, CGST and Central Excise, Patna- II, Office at 3rd to 5th
Floor, Sanchar, Parishar, Budh Marg, Patna.
4. Bihar Rajya Pul Nirman Nigam Limited through its Managing Director, 7
Sardar Patel Marg, Patna.
... ... Respondents
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Appearance :
For the Petitioner/s : Mr. Vijay Singh, Sr. Adv.
Mr.Anurag Saurav, Adv
For the UOI : Dr. K.N. Singh,
Additional Solicitor General
Mr. Anshuman Singh, Advocate
For the Pul Nigam : Md. Nadim Siraj, Adv.
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CORAM: HONOURABLE MR. JUSTICE P. B. BAJANTHRI
and
HONOURABLE MR. JUSTICE ALOK KUMAR PANDEY
ORAL JUDGMENT
(Per: HONOURABLE MR. JUSTICE P. B. BAJANTHRI) Date : 29-07-2025 In the instant petition, petitioner has prayed for the following relief(s):-
(i) For Issuance of an appropriate writ/ order/direction for setting aside order Dated 29.09.2023 passed by Commissioner, CGST & Central excise Patna-II Commissionerate. Patna, Under section 73(1) of Bihar Finance Act, 1994, section 119 of Finance Act, section 116 of Finance Act read with section 174 of Central Good and service Tax ACT,2017, Whereby and Where under an amount of Rs. 4,41,70,329 Patna High Court CWJC No.16147 of 2023 dt.29-07-2025 2/5 has been imposed as service Tax under section 73(2) of Finance Act, 1994, section 119 of the Finance Act2015, Section 116 of Finance Act 2016 read with section 174 of Central Good & service Tax and Penalty of an amount of Rs. 4,41,70,329/- is imposed under section78 of Finance Act 1994, Section 119 of the Finance Act 2015, section 116 of Finance Act,2015 readwith section 174 of CGST Act,2017 and the said order has been by passed without considering the reply submitted by the petitioner where the petitioner has mentioned that the petitioner has received all payments through Government Department for the construction of Bridges and Roads which were exempted under clause 13 of Notification No.25 of 2012-
Service Tax Dated: 20.06.2012; as amended, Incorporating changes made till issuance of notification no. 10/2017- Service Tax dated 08.03.2017 from payment of Service Tax.
(ii) For Issuance of Writ in the nature of mandamus directing the respondent authority to verify the nature of work claimed by petitioner from respondent no.3 and take appropriate decision regarding the application of notification in the case of petitioner.
(iii) For Granting Stay on the Demand Notice issued by the Respondent Authority and restraining the respondent authority from initiation recovery proceeding of tax amount through the Bank account attachment.
(iv) For issuance of an appropriate Writ(s), order(S), and/or direction(s), as Your Lordships may deem fit and proper in the facts and circumstances of this case in the interest of justice.
2. Core issue involved in the present lis is whether petitioner is entitled to have the benefit of exemption insofar as payment of Patna High Court CWJC No.16147 of 2023 dt.29-07-2025 3/5 service tax, insofar as execution of government work or not. It is necessary to reproduce table-1 which is part and parcel of the impugned order dated 29.09.2023 and it reads as under:-
TABLE-I F.Y. 2015-16 F.Y.2016-17 SL. Name of the Client Amount received Amount received as No. as per Form 26AS per Form 26AS
1. Bihar Rajya Pul 2,15,94,074/- 5,49,060/-
Nirman Nigam Ltd.
2. Bihar Rajya Pul NIL 4,33,01,152/-
Nirman Nigam Ltd.
3. Bihar Rajya Pul 95,81,718/- 7,57,16,891/-
Nirman Nigam Ltd. Saharsa
4. Road Construction NIL 5,28,50,435/-
Department Division
5. Sr. Project Engg. 2,56,84,124/- 5,35,41,905/-
Special Work Division, Bettiah
6. Road Construction 14,24,531/- NIL Department
7. Exec. Engg., Rural NIL 60,26,120/-
Development Special Division, Ranchi
8. REO Works NIL 1,21,67,786/-
Division Total 5,82,84,447/- 24,41,53,349/-
3. The determination of service tax is for want of work agreement and payment certificate in respect of item no. 1 to 6 and 8. Perusal of the show cause notice read with the petitioner's reply before passing impugned order the authority has Patna High Court CWJC No.16147 of 2023 dt.29-07-2025 4/5 determined that the petitioner has failed to furnish work agreement and payment certificate in respect of item no. 1 to 6 and 8 of the aforementioned table, in that event, in all fairness the respondent should have resorted to in issuing one more show cause notice asking the petitioner to furnish work agreements and payment certificates in respect of item no. 1 to 6 and 8 such demand is not forthcoming from the records therefore, the petitioner has made out a case so as to interfere with the impugned order dated 29.09.2023 passed by Commissioner, CGST & Central Excise, Patna-II, Commissionerate, Patna.
4. Accordingly, the impugned order dated 29.09.2023 passed by Commissioner, CGST & Central Excise, Patna-II, Commissionerate, Patna stands set aside. The matter is remanded to the concerned authority. The concerned authority is hereby directed to issue a fresh show cause notice asking the petitioner to furnish work agreements and payment certificates of the respective amount received by the petitioner with reference to Form-26AS for the year 2015-16 and 2016-2017 within a period of two months from the date of receipt of this order. On receipt of such notice, petitioner is hereby directed to furnish his reply alongwith all the necessary documents for the purpose of claiming exemption of service tax within a period of one month Patna High Court CWJC No.16147 of 2023 dt.29-07-2025 5/5 from the date of receipt of such notice. Thereafter, the concerned authority is hereby directed to pass detailed speaking order after giving due consideration of petitioner's reply read with documents to the show cause notice to be issued by the respondents.
5. Writ petition stands allowed.
(P. B. Bajanthri, J) (Alok Kumar Pandey, J) vashudha/-
AFR/NAFR NAFR CAV DATE N/A Uploading Date 01.08.2025 Transmission Date N/A