M/S Shree Madhav Hardware vs The State Of Bihar
2021 Latest Caselaw 5848 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Civil Writ Jurisdiction Case No.20075 of 2021
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M/s Shree Madhav Hardware a proprietorship firm having its place of business at N.A. Ward No. 32, Gulabbagh, Purnea, Bihar - 854326 through its director namely Brajesh Kumar Agrawal male aged about 44 years Son of Girdhari Lal Agrawal Resident of NH - 31, near marketing gate, Gulabbagh, Purnea - 854326.

... ... Petitioner/s Versus

1. The State of Bihar, through the Principal Secretary Cum Commissioner, Department of State Taxes, Government of Bihar, Patna.

2. The Additional Commissioner of State Taxes, (Appeal), Purnea Division, Purnea.

3. The Deputy Commissioner of State Taxes, Purnea Circle, Purnea. (2018-

2019) ... ... Respondent/s ====================================================== Appearance :

For the Petitioner/s : Mr. Gautam Kumar Kejriwal, Advocate For the Respondent/s : Mr. Vivek Prasad ( GP-7 ) ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 06-12-2021 Petitioner has prayed for the following relief(s):-

Patna High Court CWJC No.20075 of 2021 dt.06-12-2021

Patna High Court CWJC No.20075 of 2021 dt.06-12-2021

It is brought to our notice that vide impugned order dated

21.12.2020, passed by the Respondent No. 2 namely Additional

Commissioner of State Taxes (Appeal), Purnea Division, Purnea

(Annexure-7), in Appeal Case No. (ARN) AD1006200005613, the

appeal of the petitioner against the order dated 20.03.2020 passed

by the Respondent No. 3 namely Deputy Commissioner of State

Taxes, Purnea Circle, Purnea, in Reference No.

ZA100320020240W (Annexure-5) and Summary of Order in

Form GST DRC-07 dated 20.03.2020 (Annexure-5/A) has been

rejected merely on the grounds of non filing of certified copy and

limitation. Both the orders were ex parte in nature.

In our considered view, the delay stands sufficiently

explained on account of COVID restrictions.

Learned counsel for the Revenue, states that he has no objection if

the matter is remanded to the Assessing Authority for deciding the

case afresh. Also, the case shall be decided on merits. Also, during

pendency of the case, no coercive steps shall be taken against the

petitioner.

Statement accepted and taken on record.

However, having heard learned counsel for the parties as

also perused the record made available, we are of the considered Patna High Court CWJC No.20075 of 2021 dt.06-12-2021

view that this Court, notwithstanding the statutory remedy, is not

precluded from interfering where, ex facie, we form an opinion

that the order is bad in law. This we say so, for two reasons- (a)

violation of principles of natural justice, i.e. Fair opportunity of

hearing. No sufficient time was afforded to the petitioner to

represent his case; (b) order passed ex parte in nature, does not

assign any sufficient reasons even decipherable from the record,

as to how the officer could determine the amount due and payable

by the assessee. The order, ex parte in nature, passed in violation

of the principles of natural justice, entails civil consequences. As

such, on this short ground alone, we dispose of the present writ

petition in the following mutually agreeable terms:

(a) We quash and set aside the impugned order dated

21.12.2020, passed by the Respondent No. 2 namely Additional

Commissioner of State Taxes (Appeal), Purnea Division, Purnea

(Annexure-7), in Appeal Case No. (ARN) AD1006200005613, the

order dated 20.03.2020 passed by the Respondent No. 3 namely

Deputy Commissioner of State Taxes, Purnea Circle, Purnea, in

Reference No. ZA100320020240W (Annexure-5) and Summary

of Order in Form GST DRC-07 dated 20.03.2020 (Annexure-

5/A);

(b) We accept the statement of the petitioner that ten per Patna High Court CWJC No.20075 of 2021 dt.06-12-2021

cent of the total amount, being condition prerequisite for hearing

of the appeal, already stands deposited. If that were so, well and

good. However, if the amount is not deposited for whatever

reason(s), same shall be done before the next date;

(c) Further the petitioner undertakes to additionally

deposit ten per cent of the amount of the demand raised before

the Assessing Officer. This shall be done within four weeks.

(d) This deposit shall be without prejudice to the

respective rights and contention of the parties and subject to

the order passed by the Assessing Officer. However, if it is

ultimately found that the petitioner's deposit is in excess, the

same shall be refunded within two months from the date of

passing of the order;

(e) We also direct for de-freezing/de-attaching of the bank

account(s) of the writ-petitioner, if attached in reference to the

proceedings, subject matter of present petition. This shall be done

immediately.

(f) Petitioner undertakes to appear before the Assessing

Authority on 27th of December, 2021 at 10:30 A.M., if possible

through digital mode;

(g) The Assessing Authority shall decide the case on

merits after complying with the principles of natural justice; Patna High Court CWJC No.20075 of 2021 dt.06-12-2021

(h) Opportunity of hearing shall be afforded to the

parties to place on record all essential documents and

materials, if so required and desired;

(i) During pendency of the case, no coercive steps shall

be taken against the petitioner.

(j) The Assessing Authority shall pass a fresh order

only after affording adequate opportunity to all concerned,

including the writ petitioner;

(k) Petitioner through learned counsel undertakes to

fully cooperate in such proceedings and not take unnecessary

adjournment;

(l) The Assessing Authority shall decide the case on

merits expeditiously, preferably within a period of two months

from the date of appearance of the petitioner;

(m) The Assessing Authority shall pass a speaking

order assigning reasons, copy whereof shall be supplied to the

parties;

(n) Liberty reserved to the petitioner to challenge the

order, if required and desired;

(o) Equally, liberty reserved to the parties to take

recourse to such other remedies as are otherwise available in

accordance with law;

Patna High Court CWJC No.20075 of 2021 dt.06-12-2021

(p) We are hopeful that as and when petitioner takes

recourse to such remedies, before the appropriate forum, the

same shall be dealt with, in accordance with law, with a

reasonable dispatch;

(q) We have not expressed any opinion on merits and

all issues are left open;

(r) If possible, proceedings during the time of current

Pandemic [Covid-19] be conducted through digital mode;

The instant petition sands disposed of in the aforesaid

terms.

Interlocutory Application(s), if any, also stands

disposed of.

Learned counsel for the respondents undertakes to

communicate the order to the appropriate authority through

electronic mode.

(Sanjay Karol, CJ)

(S. Kumar, J) P.K.P./-

AFR/NAFR
CAV DATE
Uploading Date          10.12.2021
Transmission Date