M/A Ceat Limited, A Company ... vs The Union Of India
2021 Latest Caselaw 3172 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                     Civil Writ Jurisdiction Case No.11280 of 2021

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M/a CEAT Limited, A Company incorporated under the Companies Act

1956/2013 Having Office at Besides NRL Petrol Pump, NH 30 Ashu Chak,

Transport Nagar, Patna, Bihar - 800026 Through its Authorized

Representative Ram Krishna Chauhan (Male) Aged about 37 Years S/o Prithvi

Raj Chauhan R/o House No. 467, Railway Gole Market, P.O. and P.S. -

Balidih, Radhanagar, District - Bokaro, Jharkhand.

... ... Petitioner/s

Versus

1. The Union of India Through the Secretary Department of Revenue, Ministry

of Finance, North Block, New Delhi- 110001.

2. The Secretary Department of Revenue, Ministry of Finance, North Block,

New Delhi - 110001.

3. The State of Bihar through the Secretary-Cum-Commissioner-Commercial

Taxes, Govt. of Bihar, Vikas Bhawan, Patna.

4. The Secretary-Cum-Commissioner-Commercial Taxes, Govt. of Bihar,

Vikas Bhawan, Patna.

5. The Additional Commissioner State Tax (Appeals), Central Division, Patna.

6. The Assistant Commissioner, State Taxes, Patliputra Circle, Patna.

... ... Respondent/s

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Appearance :

For the Petitioner/s : Mr.Brisketu Sharan Pandey

For the Union of India : Dr. K.N.Singh, Addl. S.G. Patna High Court CWJC No.11280 of 2021 dt.08-07-2021

Mr. Anshuman Singh, Sr. S.C., CGST & CX

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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): Patna High Court CWJC No.11280 of 2021 dt.08-07-2021

The instant petition has been filed for for quashing of

the show cause notice dated 28.12.2020 (AnnexureP/3) and

order dated 23.02.2021 passed by the Respondent No.6 namely

Assistant Commissioner, State Taxes, Patliputra Circle, Patna

(Annexure P/1) whereunder a demand order in form DRC-07

has been issued.

Patna High Court CWJC No.11280 of 2021 dt.08-07-2021

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 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: Patna High Court CWJC No.11280 of 2021 dt.08-07-2021

(a) We quash and set aside the how cause notice dated

28.12.2020 (AnnexureP/3) and order dated 23.02.2021 passed

by the Respondent No.6 namely Assistant Commissioner, State

Taxes, Patliputra Circle, Patna (Annexure P/1);

(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 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 Patna High Court CWJC No.11280 of 2021 dt.08-07-2021

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 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 Patna High Court CWJC No.11280 of 2021 dt.08-07-2021

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;

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 Patna High Court CWJC No.11280 of 2021 dt.08-07-2021

electronic mode.

(Sanjay Karol, CJ)

( S. Kumar, J) Ashwini/-

AFR/NAFR
CAV DATE
Uploading Date          14.07.2021
Transmission Date