M/S S.P. Singla Construction Pvt. ... vs The State Of Bihar
2021 Latest Caselaw 6102 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.20412 of 2021
     ======================================================

M/S S.P. Singla Construction Pvt. Ltd. having its office at 601, Kumar Tower, Boring Road, Patna through Nagendra Kumar Chaudhary (male) aged about 51 years, R/o G-1, Brahamsthan Gali, Jagdamba Palace, Sheikhpura Bagicha, Danapur, P.S.- Rupaspur, District - Patna.

... ... Petitioner/s Versus

1. The State of Bihar through the Commissioner of State Tax, New Secretariat, Bihar, Patna.

2. The Commissioner of State Tax, Bihar, Patna.

3. The Deputy Commissioner of State Tax, Special Circle, Patna.

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

For the Petitioner/s : Mrs. Archana Sinha @ Archana Shahi, 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 : 14-12-2021

Petitioner has prayed for the following relief(s):

"i) To issue an appropriate writ/order/direction in the nature of Certiorari for quashing order dated 12.07.18 (Annexure-2) passed by respondent no.3 by which interest of Rs.88,92,972/- had been imposed under Section 8 Bihar Entry Tax read with Sec 31 of Value Added Tax;

ii) To any other relief or reliefs for which the Petitioners is found entitled to in the facts and circumstances of the case." Patna High Court CWJC No.20412 of 2021 dt.14-12-2021

The instant petition has been filed for quashing

of the order dated 12.07.2018, as contained in Annexure-2,

passed by respondent No.3, namely, the Deputy

Commissioner of State Tax, Special Circle, Patna whereby

interest of Rs.88,92972/- has been imposed under Section 8

of the Bihar Entry Tax read with Section 31 of the Value

Added Tax Act.

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 Patna High Court CWJC No.20412 of 2021 dt.14-12-2021

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 12.07.2018, as contained in Annexure-2, passed by

respondent No.3, namely, the Deputy Commissioner of

State Tax, Special Circle, Patna.

(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 respective rights and contention of the parties and Patna High Court CWJC No.20412 of 2021 dt.14-12-2021

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 03.01.2022 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 Patna High Court CWJC No.20412 of 2021 dt.14-12-2021

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;

(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; and

(q) We have not expressed any opinion on merits

and all issues are left open.

The instant petition sands disposed of in the Patna High Court CWJC No.20412 of 2021 dt.14-12-2021

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) Ranjan/Sanjay AFR/NAFR CAV DATE Uploading Date 17.12.2021 Transmission Date