Trident Digital Network vs The State Of Bihar
2021 Latest Caselaw 3178 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Civil Writ Jurisdiction Case No.10674 of 2021
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Trident Digital Network A partnership firm, having its registered office at Nirmala Market Jawahar Lal Road, Opposite PNB Bank, P.S.- Town Thana, Distt.- Muzaffarpur, Bihar- 842001, through its Partner Shri Manish Kumar, Male, Aged about 44 years, Son of Late Radheshwar Thakur, Resident of in front of PNT Colony, Second Gate, Radheshwar Niwas, P.S.- Mithanpura, Distt.- Muzaffarpur, Bihar- 842002.

... ... Petitioner/s Versus

1. The State of Bihar Through the Commissioner, State Taxes, Government of Bihar, Patna.

2. The Commissioner State Taxes, Bihar, Patna.

3. The Joint Commissioner of State Taxes West Circle, District- Muzaffarpur.

4. The Assistant Commissioner of State Taxes West Circle, District-

Muzaffarpur.

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

For the Petitioner/s : Mr. Satyabir Bharti, Advocate Mrs. Prachi Pallavi, Advocate For the Respondent/s : Mr. Vikash Kumar, SC-11 ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

(The proceedings of the Court are being conducted by Hon'ble the Chief Justice/ Hon'ble Judges through Video Conferencing from their residential offices/residences. Also, the Advocates and the Staffs joined the proceedings through Video Conferencing from their residences/offices.)

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

"1(i) Issuance of a writ of certiorari or any other appropriate writ, order or direction, quashing the impugned order(s) dated 24.07.2019 passed under Section 74 of the Bihar goods & Service Tax Act, 2017 (hereinafter referred to as the "BGST Act") for the period Patna High Court CWJC No.10674 of 2021 dt.08-07-2021

(a) May, 2018-March, 2019 and (b) April, 2019-June, 2019 (Annexures-3, page 24), by which the respondent no.3, namely the Joint Commissioner of State Taxes, West Circle, District Muzaffarpur, has imposed on the petitioner tax, penalty with interest, in a procedure unknown to the provisions with respect to the non-filing of returns as provided in the Bihar Goods and Services Tax Act ("Act"), 2017 and the circulars issued thereunder;

(ii) Issuance of a writ of certiorari or any other appropriate writ, order or direction, quashing the impugned order(s) dated 26.08.2019 passed under Section 74 of the Bihar goods & Service Tax Act, 2017 (hereinafter referred to as the "BGST Act") for the period

(a) May, 2018- March, 2019 and (b) April, 2019-June, 2019 (Annexures-5, page 39), by which the respondent no.3, namely the Joint Commissioner of State Taxes, West Circle, District Muzaffarpur, has reimposed on the petitioner, tax penalty with interest for the same period, in disregard to the established procedure to be followed in cases of non filing of returns;

(iii) To direct the respondents not to take any coercive action against the petitioner during the pendency of the present writ application;

(iv) Issuance of any other writ(s), order(s), or direction(s) as may be deemed fit and proper by this Hon'ble Court."

It is brought to our notice that vide impugned order

dated 24.07.2019 (Annexure-3), passed by respondent Patna High Court CWJC No.10674 of 2021 dt.08-07-2021

no.3, namely the Joint Commissioner of State Taxes, West

Circle, District Muzaffarpur, the petitionar has been

imposed tax penalty with interest and vide order dated

26.08.2019 (Annexure-5), passed by respondent no.3, the

Joint Commissioner of State Taxes, West Circle, District

Muzaffarpur, the petitioner has been re-imposed tax

penalty with interest.

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 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, Patna High Court CWJC No.10674 of 2021 dt.08-07-2021

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 24.07.2019 (Annexure-3), passed by respondent

no.3, namely the Joint Commissioner of State Taxes, West

Circle, District Muzaffarpur and order dated 26.08.2019

(Annexure-5), passed by respondent no.3, the Joint

Commissioner of State Taxes, West Circle, District

Muzaffarpur;

(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;

Patna High Court CWJC No.10674 of 2021 dt.08-07-2021

(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 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 Patna High Court CWJC No.10674 of 2021 dt.08-07-2021

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) Liberty reserved to the petitioner to challenge

the order, if required and desired;

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

recourse to such other remedies as are otherwise available

in accordance with law;

(o) 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;

Patna High Court CWJC No.10674 of 2021 dt.08-07-2021

(p) We have not expressed any opinion on merits

and all issues are left open;

(q) 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./Amrendra/

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