M/S G. Power Solution vs The State Of Bihar
2022 Latest Caselaw 4392 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                Civil Writ Jurisdiction Case No.11271 of 2022
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M/s G. Power Solution a Proprietorship Firm having its principal place of business at 1st Floor, 2, Madhuraj, Dr. R.K. Agrawal, Rajendra Path, Patna through its Authorized Signature namely Alok Kumar, aged about 47 years, Male, son of Shri Ram Rekha Thakur, resident of Dwarka Nagar, Muzaffarpur presently residing at 2, Madhuraj, Dr. R.K. Agrawal, Rajendra Path, P.S. Gandhi Maidan, District Patna.

... ... Petitioner/s Versus

1. The State of Bihar through the Principal Secretary-cum-Commissioner, State Tax, Government of Bihar, Patna.

2. The Principal Secretary-cum-Commissioner, State Tax, Government of Bihar, Patna.

3. The Joint Commissioner of State Tax, Patna North Circle, Patna.

4. The Assistant Commissioner of State Tax, Patna North Circle, Patna.

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

For the Petitioner/s : Mr.Mohit Agarwal, Advocate Ms, Sushmita Mishra, Advocate Mr. Lokesh Kumar, Advocate For the Respondent/s : 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 : 10-08-2022 Heard learned counsel for the parties.

Petitioner has prayed for the following relief(s):- Patna High Court CWJC No.11271 of 2022 dt.10-08-2022

Patna High Court CWJC No.11271 of 2022 dt.10-08-2022

Patna High Court CWJC No.11271 of 2022 dt.10-08-2022

Petitioner has prayed for quashing of the impugned

order dated 17.03.2020 passed by the respondent Assistant

Commissioner of State Tax, Patna North Circle, Patna

under Section 73(9) of Bihar GST Act, 2017 for the F.Y.

2017-18 (Annexure-2) and Summary of the order in Form

GST DRC-07 dated 17.03.2020 in Reference No. Patna High Court CWJC No.11271 of 2022 dt.10-08-2022

ZA100320019174G (Annexure-3).

The order appear to be 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 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, we dispose of the present writ petition in the Patna High Court CWJC No.11271 of 2022 dt.10-08-2022

following mutually agreeable terms:

(a) We quash and set aside the impugned order

dated 17.03.2020 passed by the respondent Assistant

Commissioner of State Tax, Patna North Circle, Patna

under Section 73(9) of Bihar GST Act, 2017 for the F.Y.

2017-18 (Annexure-2) and Summary of the order in Form

GST DRC-07 dated 17.03.2020 in Reference No.

ZA100320019174G (Annexure-3);

(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. Patna High Court CWJC No.11271 of 2022 dt.10-08-2022

(e) Petitioner undertakes to appear before the

Assessing Authority on 12th of September, 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

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 Patna High Court CWJC No.11271 of 2022 dt.10-08-2022

order assigning reasons, copy whereof shall be supplied to

the parties;

(m) Liberty reserved to the petitioner to challenge

the vires of Section 16(4) of GST Act by way of separate

proceedings.

(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

digital mode;

The instant petition stands disposed of in the

aforesaid terms.

Patna High Court CWJC No.11271 of 2022 dt.10-08-2022

Interlocutory Application(s), if any, shall stand

disposed of.

(Sanjay Karol, CJ)

( S. Kumar, J) veena/rajiv-

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