Patna High Court
M/S Vaishali Chemicals vs The State Of Bihar on 30 June, 2021
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.7297 of 2021
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M/s Vaishali Chemicals having its registered Office at Industrial Area, Harpur
Alloth, Samastipur, Bihar-848101, through its Partner Mr. Suresh Pandey,
Male aged 50 Years, Son of Late V. N Pandey, resident of House No. E 136A,
Luxmi Park, Nagloi, P.S. Nagloi, Delhi-110041
... ... 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, Samastipur Circle, Distirct-
Samastipur.
4. The Assistant Commissioner of State Taxes, Samastipur Circle, District-
Samastipur.
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr.Satyabir Bharti, Advocate
Ms. Prachi Pallavi, Advocate
For the Respondent/s : Mr.Vikash Kumar (SC 11)
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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 : 30-06-2021
Petitioner has prayed for the following relief(s):
(i) Issuance of a writ of certiorari or
any other appropriate writ, order or
direction, quashing the impugned order
dated 08.03.2020 (Annexure-5, page
31), passed under Section 73(9) of the
Bihar Goods and Service Tax Act,
2017, by which the respondent no.4,
Patna High Court CWJC No.7297 of 2021 dt.30-06-2021
namely the Assistant Commissioner of
State Taxes, Samastipur Circle, District
Samastipur, without considering the
replies filed by the petitioner and
disagreeing with the cause shown by
the petitioner, in pursuance to the
notice under Section 61 and Section
73(2) of the Act, a demand order
determining a liability of a total sum of
Rs. 3,65,025.15 has been fastened
upon the petitioner for the FY 2018-
19;
(ii) To direct the respondents to pass a
fresh order upon considering the reply
of the petitioner in compliance to
notices issued under Section 61 and
Section 73(2) of the Bihar Goods and
Service Tax Act, 2017;
(iii) To direct the respondents not to
take any coercive action against the
petitioner till 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 08.03.2020 passed by the Respondent No. 2
namely the Assistant Commissioner of State Taxes,
Samastipur Circle, Samastipur under Section 73(9) of Bihar
Goods and Service Tax Act, 2017 passed in GSTIN-
10AALFC2179F1ZS for the period April 2018 to March 2019
by which Respondent No. 4 without considering the replies
filed by the petitioner and disagreeing with the cause shown
by the petitioner, in pursuance of the notice under Section 61
and Section 73(2) of the Act, a demand order determining a
Patna High Court CWJC No.7297 of 2021 dt.30-06-2021
liability of a total sum of Rs.3,65,025.15 has been fastened
upon the petitioner for the FY 2018-19.
Learned counsel for the Revenue, states that he has
no objection if the matter is remanded to the Appellate
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
Patna High Court CWJC No.7297 of 2021 dt.30-06-2021
dispose of the present writ petition in the following mutually
agreeable terms:
(a) We quash and set aside the impugned order
dated 08.03.2020 passed by the Respondent No. 4 namely
the Assistant Commissioner of State Taxes, Samastipur
Circle, Samastipur under Section 73(9) of Bihar Goods and
Service Tax Act, 2019 passed in GSTIN-
10AALFC22179F1ZS;
(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
Patna High Court CWJC No.7297 of 2021 dt.30-06-2021
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 9th 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
Patna High Court CWJC No.7297 of 2021 dt.30-06-2021
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;
(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.
Patna High Court CWJC No.7297 of 2021 dt.30-06-2021
Learned counsel for the respondents
undertakes to communicate the order to the appropriate
authority through electronic mode.
(Sanjay Karol, CJ)
( S. Kumar, J)
K.C.Jha/-
AFR/NAFR
CAV DATE
Uploading Date 07.07.2021
Transmission Date
