M/S Laxmi Enterprises vs The State Of Bihar
2022 Latest Caselaw 2154 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.5478 of 2022
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M/s Laxmi Enterprises, a proprietary concern having its office at Boring Canal Road, Patna, Bihar, 800001 through its Proprietor namely Satish Kumar Sinha, aged about 66 years, Gender-Male, Son of Sri Saryug Narayan, resident of B-151, Budha Colony, Police Station - Budha Colony, Patna - 800001.

... ... Petitioner/s Versus

1. The State of Bihar, through the Principal Secretary - Cum - Commissioner of Taxes, Patna having its office at Vikas Bhawan, Patna.

2. The Assistant Commissioner of Commercial Taxes, Patna Central Circle, Patna.

3. The State Bank of India, through its Branch Manager, State Bank of India, East Boring Canal Road Branch, Patna, Bihar, PIN - 800001.

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

For the Petitioner/s : Mr. Mukesh Kant, Advocate Mr. Manish Kumar, Advocate Mr. Sudarshan Kumar, Advocate For the Respondent/s : Mr. Vikash Kumar (SC-11) Mr. Binod Bihari Sinha, Advocate Mr. Apurv Harsh, Advocate ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 18-04-2022

Heard learned counsel for the parties.

Petitioner has prayed for the following relief(s):- Patna High Court CWJC No.5478 of 2022 dt.18-04-2022

Petitioner has prayed for quashing of the notice Patna High Court CWJC No.5478 of 2022 dt.18-04-2022

cum demand DRC-01 dated 26.12.2020 issued under Section

73(1) of the BGST Act by the Assistant Commissioner of

State Taxes, Patna Central Circle, Patna (Annexure-2) as also

the order issued under Section 73(9) of the BGST Act by

Respondent No. 2 namely Assistant Commissioner of State

Taxes, Patna Central Circle, Patna (Annexure-4).

The orders are ex parte in nature.

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 reasons sufficient even decipherable from the Patna High Court CWJC No.5478 of 2022 dt.18-04-2022

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. We also find the authorities not to have adjudicated

the matter on the attending facts and circumstances. All issues of

fact and law ought to have been dealt with, even if the proceedings

were to be ex parte in nature.

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 notice

cum demand DRC-01 dated 26.12.2020 issued under

Section 73(1) of the BGST Act by the Assistant

Commissioner of State Taxes, Patna Central Circle, Patna

(Annexure-2), order issued under Section 73(9) of the

BGST Act by Respondent No. 2 namely Assistant

Commissioner of State Taxes, Patna Central Circle, Patna

(Annexure-4);

(b) Petitioner undertakes to deposit ten per cent of

the amount of the demand raised before the Assessing

Officer, over and above the amount already deposited with

the authority. This shall be done within four weeks;

(c) This deposit shall be without prejudice to the Patna High Court CWJC No.5478 of 2022 dt.18-04-2022

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 2nd of May, 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;

(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 Patna High Court CWJC No.5478 of 2022 dt.18-04-2022

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;

(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;

Patna High Court CWJC No.5478 of 2022 dt.18-04-2022

(q) If possible, proceedings during the time of

current Pandemic [Covid-19] be conducted through

digital mode;

The instant petition stands disposed of in the

aforesaid terms.

Interlocutory Application(s), if any, 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 AFR/NAFR CAV DATE Uploading Date 19.04.2022 Transmission Date