M/S Renu Kumari vs The Union Of India
2022 Latest Caselaw 2019 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.4434 of 2022
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M/s Renu Kumari (sole proprietor firm) having its registered office at village

- Mahmadpur Baya P.O. and P.S. Saraiya, District - Muzaffarpur through its proprietors Mrs. Renu Kumari.

... ... Petitioner/s

Versus

1. The Union of India through the Secretary, Ministry of Finance, Department of Revenue, having its office at Room No. 46, North Block, P.O. and P.S. North Block, New Delhi- 110001.

2. The Central Board of Indirect Taxes and Customs, through its Chairman, Ministry of Finance, Department of Revenue, having its Office at North Block, P.O. and P.S. North Block, New Delhi- 110001.

3. The Commissioner of Central Goods and Services Tax and Central Excise, Patna having its office at New Secretariat Patna Bihar.

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

5. Assistant Commissioner of State Tax, West Circle Muzaffarpur, Bihar.

6. Additional Commissioner (Appeal), Muzaffarpur Division, Muzaffarpur.

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

For the Petitioner/s : Mr.Anurag Saurav, Advocate Mr. Abhinav Alok, Advocate Mr. Priyajeet Pandey, Advocate For the U.O. I. : Mr. Anshuman Singh, Sr. S.C., C.G.S.T. & CX For the State : Mr.Vivek Prasad, (G.P. 7) ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 05-04-2022

Petitioner has prayed for following reliefs : -

(i) For issuance of an appropriate writ/order/direction for setting aside order bearing reference no.ZD1001210116295 dated 13.01.2020 passed by Assistant Commissioner of State Tax Jurisdiction, Muzaffarpur, Bihar whereby and whereunder tax (along with interest and penalty) amounting Rs.7,91,709/- has been Patna High Court CWJC No.4434 of 2022 dt.05-04-2022

imposed by the respondent under Section 74 of BGST Act and the said proceeding has been initiated by the respondent authorities on the ground that a deduction of TDS in the name of petitioner were reflecting in GSTR -7 of some deductor and the same has not been disclosed by the petitioner in their return.

(ii) For setting aside order dated 10.12.2020 passed by Assistant Commissioner of State Tax Jurisdiction, Muzaffarpur, Bihar whereby and whereunder an amount of Rs.7,91,709/- has been imposed on the petitioner by respondent authority on the ground of not disclosing accurate turnover from October, 2019 to March, 2020.

(iii) For setting aside the demand notice issued in the Form of GST DRC 07 dated 13.01.2021 whereby and whereunder a tax amounting Rs.7,91,709/- has been imposed.

(iv) For setting aside order dated 13.01.2021 issued by Process No.884 dated 26.02.2021 to Branch Manager and District Co-ordinator by Respondent No.5 whereby and whereunder respondent directed to recover the sum amount of Rs.7,91,710/- from the account of petitioner.

(v) For restraining the respondent authorities for issuance of DRC 13 for recovery of tax amount through the Bank account attachment.

(vi) For issuance of an appropriate writ(s), order(s) and/or direction (s) as Your Lordships may deem fit and proper in the facts and circumstances of this case in the interest of justice.

It is brought to our notice that vide impugned orders

and the demand notice dated 10.12.2020 and 13.01.2021, passed

by the Respondent No. 5, namely the Assistant Commissioner of

State Tax, West Circle, Muzaffapur, tax liability amounting to

Rs.7,91,709/-, including interest and penalty, has been imposed,

without providing any opportunity to the petitioner. Patna High Court CWJC No.4434 of 2022 dt.05-04-2022

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:

(a) We quash and set aside the impugned orders and Patna High Court CWJC No.4434 of 2022 dt.05-04-2022

the demand notice dated 10.12.2020 and 13.01.2021, passed

by the Respondent No. 5, namely the Assistant Commissioner

of State Tax, West Circle, Muzaffapur, imposing tax liability

amounting to Rs.7,91,709/-, including interest and penalty;

(b) The petitioner undertakes to deposit twenty per

cent of the amount of the demand raised before the

Assessing Officer. This shall be done within four weeks.

(c) 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;

(d) 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.

(e) Petitioner undertakes to appear before the

Assessing Authority on 19.04.2022 at 10:30 A.M., if possible

through digital mode;

(f) The Assessing Authority shall decide the case on

merits after complying with the principles of natural justice; Patna High Court CWJC No.4434 of 2022 dt.05-04-2022

(g) Opportunity of hearing shall be afforded to the

parties to place on record all essential documents and

materials, if so required and desired;

(h) During pendency of the case, no coercive steps

shall be taken against the petitioner.

(i) The Assessing Authority shall pass a fresh order

only after affording adequate opportunity to all concerned,

including the writ petitioner;

(j) Petitioner through learned counsel undertakes to

fully cooperate in such proceedings and not take

unnecessary adjournment;

(k) 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;

(l) The Assessing Authority shall pass a speaking

order, assigning reasons, copy whereof shall be supplied to

the parties;

(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;

Patna High Court CWJC No.4434 of 2022 dt.05-04-2022

(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.

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/chn AFR/NAFR CAV DATE Uploading Date 11.04.2022 Transmission Date