M/S Nagendra Singh vs The Union Of India
2022 Latest Caselaw 5003 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Civil Writ Jurisdiction Case No.16610 of 2022
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M/s Nagendra Singh NA, Swet Nagar, Nahar Colony, Buxar through its Proprietor Nagendra Singh, Aged about 50 years, Gender Male, son of Jagdish Singh, Resident of Village/ Mohalla Ward No. 12, Swet Nagar, Nahar Colony, P.S. Buxar, District Buxar.

... ... Petitioner/s Versus

1. The Union of India through the Secretary, Ministry of Finance, Government of India, New Delhi.

2. The Principal Chief Commissioner, CGST, Central Revenue Building, Birchand Patel Path, Patna.

3. The State of Bihar through the Commissioner, Department of State Taxes, Government of Bihar, Patna.

4. The Additional Commissioner, State Taxes (Appeals), Patna West Division, Patna.

5. The Assistant Commissioner, State Tax, Buxar Circle, District- Buxar.

... ... Respondent/s

====================================================== Appearance :

For the Petitioner/s : Mr.Alok Kumar, Advocate For the Respondent/s : Dr. K. N. Singh, ASG ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE PARTHA SARTHY ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

(The proceedings of the Court are being conducted by Hon'ble the Chief Justice/ Hon'ble Judges through Video Conferencing from their residential offices/residences. Also, the Advocates and the Staffs joined the proceedings through Video Conferencing from their residences/offices.)

Date : 09-12-2022

Heard learned counsel for the parties.

The petitioner has prayed for the following relief/s :- Patna High Court CWJC No.16610 of 2022 dt.09-12-2022

Patna High Court CWJC No.16610 of 2022 dt.09-12-2022

It is brought to our notice that vide impugned order

dated 18.10.2022 issued vide memo Nos. 1820 and 1823 by the

Respondent No. 4, namely, Additional Commissioner of State

Taxes (Appeal), Patna West Division, Patna in Appeal Case No.

GST/BX-28/2022-23 and GST/BX-31/2022-23, the appeal of the

petitioner against the order dated 02.08.2019 passed by Deputy

Commissioner of State Tax, Buxar and the summary of order dated

07.12.2021 ((Reference No. ZD1012210045657) and 08.12.2021

(Reference No. ZD1012210051886) issued in form GST DRC-07,

has been rejected. The orders appeared 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 and limitation shall not be allowed to

come in the way. 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 Patna High Court CWJC No.16610 of 2022 dt.09-12-2022

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; (c) 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 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

18.10.2022 issued vide memo Nos. 1820 and 1823 by the

Respondent No. 4, namely, Additional Commissioner of State

Taxes (Appeal), Patna West Division, Patna in Appeal Case

No. GST/BX-28/2022-23 and GST/BX-31/2022-23; order

dated 02.08.2019 passed by the Deputy Commissioner of State

Tax, Buxar and the summary of order dated 07.12.2021

((Reference No. ZD1012210045657) and 08.12.2021

(Reference No. ZD1012210051886) issued in form GST DRC-

Patna High Court CWJC No.16610 of 2022 dt.09-12-2022

07;

(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. 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 23.12.2022 at 10:30 A.M., if possible through Patna High Court CWJC No.16610 of 2022 dt.09-12-2022

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;

(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 Patna High Court CWJC No.16610 of 2022 dt.09-12-2022

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 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)

( Partha Sarthy, J) Ashwini/Sujit AFR/NAFR CAV DATE Uploading Date 13.12.2022 Transmission Date