Rahul Tradewing Pvt. Ltd vs The State Of Bihar
2021 Latest Caselaw 5849 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.20060 of 2021
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Rahul Tradewing Pvt. Ltd. a registered company having its registered office at EE0260166, near 0 mile, NH - 31, Gulabbagh, Purnea, Bihar - 854326 through its director namely Arun Kumar Agrawal male aged about 49 years son of Ram Awtar Agrawal resident of NH - 31, Near Marketing Yard, Lakhan Jhari, Purnea - 854326, Bihar.

... ... 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 Joint Commissioner of State Taxes, Purnea Circle, Purnea. (2018-2019).

... ... Respondent/s ====================================================== Appearance :

For the Petitioner/s : Mr.Gautam Kumar Kejriwal For the Respondent/s : Mr.Vikash Kumar (Sc11) ====================================================== 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.20060 of 2021 dt.06-12-2021

It is brought to our notice that vide impugned order dated

6th of August, 2021, passed by the Respondent No. 2 namely

Additional Commissioner of State Taxes (Appeal), Purnea

Division, Purnea, in Appeal Case No. (ARN) AD100521000241B

(Annexure-7), the appeal of the petitioner against the order dated Patna High Court CWJC No.20060 of 2021 dt.06-12-2021

12.02.2021, passed by the Respondent No. 3 namely the Joint

Commissioner of State Taxes, Purnea Circle, Purnea (Annexure-

5) and the summary of the order in Form GST DRC-07 dated

12.02.2021 passed in Reference No. ZD1002210088814

(Annexure-5/A) has been rejected. Both the orders were ex parte

in nature.

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

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 Patna High Court CWJC No.20060 of 2021 dt.06-12-2021

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 6 th of

August, 2021, passed by the Respondent No. 2 namely Additional

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

in Appeal Case No. (ARN) AD100521000241B (Annexure-7),

order dated 12.02.2021, passed by the Respondent No. 3 namely

the Joint Commissioner of State Taxes, Purnea Circle, Purnea

(Annexure-5) and the summary of the order in Form GST DRC-

07 dated 12.02.2021 passed in Reference No. ZD1002210088814

(Annexure-5/A);

(b) We accept the statement of the petitioner that ten per

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 Patna High Court CWJC No.20060 of 2021 dt.06-12-2021

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;

(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;

Patna High Court CWJC No.20060 of 2021 dt.06-12-2021

(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;

(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;

Patna High Court CWJC No.20060 of 2021 dt.06-12-2021

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