Shree Vishnu Vishal Paper Mills ... vs The State Of Bihar
2022 Latest Caselaw 507 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Civil Writ Jurisdiction Case No.5832 of 2021
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Shree Vishnu Vishal Paper Mills Pvt. Ltd. a company incorporated under the Companies Act having its Office at 404, N.P. Centre New Dak Bunglow road, Patna through its authorized Signatory Mukesh Kumar Singh Son of Sri Kameshwar Singh, Resident of Bachri, Akhgaon, Sandesh, District- Bhojpur.

... ... Petitioner/s Versus

1. The State of Bihar through the Commissioner of State Tax, Bihar, Patna having its Office at Vikas Bhawan, Bailey Road, Patna.

2. Joint Commissioner of State Tax, North Circle, Patna.

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

For the Petitioner/s : Mr. D.V.Pathy, Advocate For the Respondent/s : Mr. Vikash Kumar, SC-11 ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR 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 : 20-01-2022 Heard learned counsel for the parties.

Petitioner has prayed for the following relief(s):- Patna High Court CWJC No.5832 of 2021 dt.20-01-2022

Petitioner has prayed for quashing of the order dated

31.12.2019 passed by Respondent No. 2 namely the Joint

Commissioner of State Tax, North Circle, Patna and the notice of

demand under Section 25 and Section 39 of the Bihar Value Added

Tax Act, 2005 (Notice Id- N120284432447340) dated 31.12.2019

(Annexure- 8 series).

The order appears 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 Patna High Court CWJC No.5832 of 2021 dt.20-01-2022

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 order dated

31.12.2019 passed by Respondent No. 2 namely the Joint

Commissioner of State Tax, North Circle, Patna and the notice of

demand under Section 25 and Section 39 of the Bihar Value Added

Tax Act, 2005 (Notice Id- N120284432447340) dated 31.12.2019

(Annexure- 8 series);

(b) Petitioner undertakes to deposit ten 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 Patna High Court CWJC No.5832 of 2021 dt.20-01-2022

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 14th of February, 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; Patna High Court CWJC No.5832 of 2021 dt.20-01-2022

(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;

(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 Patna High Court CWJC No.5832 of 2021 dt.20-01-2022

communicate the order to the appropriate authority through

electronic mode.

(Sanjay Karol, CJ)

(S. Kumar, J) Amrendra/PKP AFR/NAFR CAV DATE Uploading Date 21.01.2022 Transmission Date