M/S Sonal Agencies vs The State Of Bihar
2022 Latest Caselaw 2155 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.5403 of 2022
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M/S Sonal Agencies, Through its Proprietor, Sanjay Kumar, S/O Ramchandra Singh, aged 46 years, Male, resident of ward no. 08 Dih, Sasauna, Samastipur, Gauspur Sasauna, Samastipur.

... ... Petitioner/s Versus

1. The State of Bihar Through the Commissioner of State Tax, Bihar, New Secretariat, Patna.

2. The Commissioner of State Tax, Bihar, New Secretariat, Patna.

3. The Additional Joint Commissioner of State Tax (Appeal), Darbhanga Division, Darbhanga.

4. The Joint Commissioner of State Tax, Samastipur Circle, Samastipur.

5. The Assistant Commissioner of State Tax, Samastipur Circle, Samastipur.

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

For the Petitioner/s : Mrs. Archana Sinha, Advocate For the Respondent/s : Mr. Vivek Prasad (GP-7) ====================================================== 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.5403 of 2022 dt.18-04-2022

It is brought to our notice that vide impugned order

dated 28.07.2021 passed by Respondent No. 3 namely

Additional Commissioner of State Tax (Appeal), Darbhanga

Division, Darbhanga, in Appeal Case No. AD1004210023229

(Annexure-2), the appeal of the petitioner against the order

dated 12.03.2020 passed by the Respondent No. 5 namely

Assistant Commissioner of State Tax, Samastipur Circle,

Samastipur (Annexure-1) and Summary of the order in Form

GST DRC-07 dated 15.03.2020 in Reference No.

ZA100320018111T has been rejected merely on the grounds

of non-filing of certified copy. The order of assessment has

been passed violating the principles of natural justice.

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 Patna High Court CWJC No.5403 of 2022 dt.18-04-2022

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 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 order

dated 28.07.2021 passed by Respondent No. 3 namely Patna High Court CWJC No.5403 of 2022 dt.18-04-2022

Additional Commissioner of State Tax (Appeal),

Darbhanga Division, Darbhanga, in Appeal Case No.

AD1004210023229 (Annexure-2), order dated 12.03.2020

passed by the Respondent No. 5 namely Assistant

Commissioner of State Tax, Samastipur Circle, Samastipur

(Annexure-1) and Summary of the order in Form GST

DRC-07 dated 15.03.2020 in Reference No.

ZA100320018111T;

(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. Patna High Court CWJC No.5403 of 2022 dt.18-04-2022

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 2nd of May, 2022 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; Patna High Court CWJC No.5403 of 2022 dt.18-04-2022

(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) The Assessing Authority shall pass a speaking

order assigning reasons, copy whereof shall be supplied to

the parties;

(n) Liberty reserved to the petitioner to challenge

the order, if required and desired;

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

recourse to such other remedies as are otherwise available

in accordance with law;

(p) 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;

(q) We have not expressed any opinion on merits

and all issues are left open;

(r) If possible, proceedings during the time of

current Pandemic [Covid-19] be conducted through Patna High Court CWJC No.5403 of 2022 dt.18-04-2022

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