Indrajeet Singh @ Indrajit vs Goods And Service Tax Council ...
2021 Latest Caselaw 3168 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                     Civil Writ Jurisdiction Case No.11634 of 2021

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Indrajeet Singh @ Indrajit son of late Rajeshwar Pd Singh resident of village

Panapur Gaurahi, Madhaul, Hajipur Dist. Vaishali.

... ... Petitioner/s Versus

1. Goods and Service Tax Council established under Article 297 A of Constitution of India, through Assistant Commissioner of State Tax, Muzaffarpur West, Tirhut, Bihar.

2. Commissioner of Central Tax, goods and Service Tax Council, Union of India, New Delhi.

3. Joint Commissioner of State Tax, West Circle, Muzaffarpur, Bihar.

4. Assistant Commissioner of State Tax, Muzaffarpur west, Tirhut, Bihar.

... ... Respondent/s

====================================================== Appearance :

     For the Petitioner/s    :       Mr.Neeraj Kumar, Advocate
                                     Mr. Prabhat Ranjan Singh, Advocate
     For the Uoi             :       Mr.Dr. K.N. Singh, ASG

Mr. Anshuman Singh, Sr. S.C., CGST & CX For the State : Mr. Vivek Prasad, GP-7 ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 08-07-2021 Petitioner has prayed for the following relief(s):

"That, the impugned order of demand dt.

05.03.2020 unilaterally passed against the petitioner U/s 73 of the GST Act by respondent No.4 be quashed and set aside as it has been passed without providing an opportunity of show cause and also without Patna High Court CWJC No.11634 of 2021 dt.08-07-2021

providing an opportunity of hearing to the petitioner, being an authority of law Respondents cannot pass order in such manner.

II. That, petitioner further prays for quashing and setting aside the consequential order of freezing bank accounts of petitioner's firm Ganpati Agro Agency vide Current A/C No. 300305010992378, running in Branch of Punjab National Bank, Muzaffarpur.

III. That, for any other relief(s) for which petitioner is found entitled on the facts of this case and also in the eye of law."

The instant petition has been filed for quashing of the

impugned order dated 05.03.2020 passed by Respondent No.4

namely Assistant Commissioner of State Tax, Muzaffarpur West,

Tirhut, Bihar. The said order was passed ex parte.

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 Patna High Court CWJC No.11634 of 2021 dt.08-07-2021

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

05.03.2020 passed by Respondent No.4 namely Assistant

Commissioner of State Tax, Muzaffarpur West, Tirhut, Bihar;

(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 Patna High Court CWJC No.11634 of 2021 dt.08-07-2021

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 16th of August, 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 Patna High Court CWJC No.11634 of 2021 dt.08-07-2021

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;

(p) We are hopeful that as and when petitioner

takes recourse to such remedies, before the appropriate Patna High Court CWJC No.11634 of 2021 dt.08-07-2021

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) Ashwini/-

AFR/NAFR
CAV DATE
Uploading Date          14.07.2021
Transmission Date