M/S Tata Project Ltd vs The State Of Bihar
2021 Latest Caselaw 1445 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.7419 of 2019
     ======================================================

M/s Tata Project Ltd. having its registered office at Mathona Towers- I, 1-7- 80 to 87, Opp. Wesley Co-ed Jr. College Prenderghast, Road, Secunderabad- 500003 (AP), and Regional Office at 203, Shanti Complex, S.P. Verma Road, Patna through its Authorized representative Mr. Santanu Chakraborty, G.M. Finance.

... ... Petitioner/s Versus

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

2. Deputy Commissioner of Commercial Taxes, Patliputra Circle, Patna.

3. Assistant Commissioner of Commercial Taxes, Patliputra Circle, Patna.

4. Audit Officer (VAT) Office of Accountant General (Audit) Bihar, Patna.

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

For the Petitioner/s : Mr.Anurag Saurav Mr. Abhinav Alok Mr. Priyajeet Pandey, Advocates 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)

Date : 15-03-2021

Petitioner has prayed for the following relief(s):

"i) For issuance of appropriate writ or writ in the nature of certiorari for quashing of order dated 05.02.2019 passed by Assistant Commissioner Commercial Taxes, Patliputra Circle, Patna whereby and where under Assistant Commissioner, Patliputra Circle had passed order dated 05.02.2019 under section 8 of Bihar Entry Tax Act read with section 31(2) Patna High Court CWJC No.7419 of 2019 dt.15-03-2021

of Bihar VAT Act for the financial year 2016-17 and imposed penalty on the petitioner amounting Rs. 14,85,685/- and the said penalty has been imposed on the petitioner on presumption that petitioner had purchased stone chips and not paid entry tax and due to non payment of entry tax vide order dated 31.12.2018 a tax amounting Rs.4,95,228/- Whereas during course of hearing petitioner produce the entire books of record to established the fact that the petitioner had not purchase any stone chips and in spite of demand made by the petitioner for providing the sources of information, respondent contrary to record the on presumption imposed tax on the petitioner

ii) For quashing of demand notice issued vide memo bearing Memo no.

                         N120466131095044                   dated           07.02.2019
                         issued     under     the      signature       of    Assistant

Commissioner, Commercial Taxes, Patliputra Circle, Patna whereby and where under a demand of Rs. 14,85,685/- was raised in favour of petitioner.

iii) For restraining the respondent authorities from recovery of the amount Rs. 14,85,685/-

demanded by respondent authorities through demand notice dated 07.02.2019.

iv) For issuance of appropriate writ in Patna High Court CWJC No.7419 of 2019 dt.15-03-2021

the nature of mandamus directing the respondent authorities to provide the source of information to the petitioner with regard to the allegation raised against the petitioner for evasion of tax during purchase of stone chips and the Assessing Officer initiated a proceeding under section 31(2) of Bihar VAT Act, for suppression or concealment of sale of stone chips without providing the source of information and without considering the settled preposition by the Apex Court that burden of proving that any turn-over which is considered as escaped turn-over and has been under assessed etc. is on the department.

v) For issuance of any other appropriate writ (S), order(s) and direction(s) as your Lordship may deem fit and proper in the facts and circumstances of the case."

Having heard learned counsel for the parties, as

also perused the record, we are in agreement with Sri Anurag

Saurabh, learned counsel for the petitioner, that the principles

of natural justice, in passing the order stands violated

inasmuch as it is only during the pendency of the present writ

petition, the documents stand supplied to the petitioner. Prior

to the passing of the impugned order, no adequate

opportunity of hearing was afforded. Patna High Court CWJC No.7419 of 2019 dt.15-03-2021

Also, we are of the view that the impugned order

dated 5.2.2019 passed by the Respondent No.3, the Assistant

Commissioner, Commercial Taxes, Patliputra Circle, Patna

needs to be quashed and set aside, for the same to have been

passed without following the principles of natural justice. In

terms of the impugned order, financial liability stands

fastened. Thus, it entails civil consequences, seriously

prejudicing the petitioner inasmuch as, without affording any

adequate opportunity of hearing or assigning any reason he is

liable to pay certain sums to the government.

At this stage, Shri Anurag Saurabh, learned

counsel for the petitioner states that without prejudice to the

respective rights and contentions of the parties and to

establish his bonafide, petitioner is ready and willing to

deposit a sum of Rs. 1 lac with the appropriate authority

within a period of two weeks from today.

Statement accepted and taken on record.

It stands clarified that deposit of such amount

would be without prejudice to the respective rights and

contentions of the parties and the order which the authority

may pass upon the matter being remanded for consideration

afresh.

Patna High Court CWJC No.7419 of 2019 dt.15-03-2021

As such, purely on a limited ground, we quash and

set aside the impugned order dated 5.2.2019 passed by the

Respondent No.3, the Assistant Commissioner, Commercial

Taxes, Patliputra Circle, Patna for the financial year 2016-17

under Section 8 of Bihar Entry Tax Act read with Section

31(2) of Bihar VAT Act, as contained in Annexure-9, with

further mutually agreeable directions that- (a) the petitioner

shall deposit a sum of Rs. 1 lac with the authority on or

before 5th of April, 2021; (b) the petitioner shall appear

before the authority on 5th of April, 2021 in his office at

10:30 A.M., on which date he shall place on record

additional material, if so required and desired; (c) also,

further opportunity shall be afforded to the parties to place

additional material, if so required and desired; (d) petitioner

undertakes to fully cooperate and not take any unnecessary

adjournment; (e) since the proceeding pertains to financial

year 2016-17, the authority shall decide the matter on merits,

in compliance of the principles of natural justice, on or

before 17th May, 2021; (f) If aggrieved, liberty reserved to

the parties to take recourse to such remedies as are otherwise

available in accordance with law; (g) we have not expressed

any opinion on merits and quashed the order only on the Patna High Court CWJC No.7419 of 2019 dt.15-03-2021

ground of violation of principles of natural justice. (h) if

necessary, proceedings during the time of current Pandemic

[Covid-19] would be conducted through digital mode; (i)

needless to add, with the passing of the order, if it is

eventually found that deposit made by the petitioner is in

excess of the amount determined due and payable, the same

shall positively be refunded expeditiously as per law.

The instant petition stands disposed of in the

aforesaid terms.

Interlocutory Application(s), if any, shall stand

disposed of.

(Sanjay Karol, CJ)

( S. Kumar, J) anil/-

AFR/NAFR
CAV DATE
Uploading Date          20.03.2021
Transmission Date