United Breweries Limited vs The State Of Bihar
2022 Latest Caselaw 593 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.16360 of 2021
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United Breweries Limited a company registered under the provisions of the Companies Act, 1956 having its registered office at U.B. Towers, U.B. City No. 24, Vittal Mallya Road, Bangalore- 560001 and factory at Plot No. A1, Industrial Area, Kopakala, P.S.- Naubatpur, District- Patna through its Authorized Signatory Shri Ajay Kumar Singh, Male, aged about 56 years son of Late Sarbdeo Singh, resident of Shail Bhawan, R.M.S. Colony, Kankarbagh, P.S. Kankarbagh, District- Patna

... ... Petitioner/s Versus

1. The State of Bihar through the Commissioner-cum- Secretary, State Taxes, Bihar, Patna.

2. The Joint Commissioner, State Tax, Patliputra Circle, Patna.

3. The Assistant Commissioner, State Tax, Patliputra Circle, Patna.

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

For the Petitioner/s : Msr. Prachi Pallavi, 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 : 24-01-2022

Heard learned counsel for the parties.

Petitioner has prayed for the following relief(s):-

"(i) Quashing the order and demand notice, both dated 30.07.2021 (Annexure-9 & 9/1, page-50-53) Patna High Court CWJC No.16360 of 2021 dt.24-01-2022

passed by the Assistant Commissioner, Commercial Tax, Patliputra Circle, Patna under Section 8 of the Bihar Tax on Entry of Goods Act, 1993 read with Section 33 of the Bihar Value Added Tax Act, 2005, by which, on the basis of audit objection, an interest of Rs.28,95,728.00 on delayed payment of Entry Tax for the period 2015-16, has been imposed upon the petitioner;

(ii) To pass such other order (orders) as your Lordship may deem fit and proper in the facts and circumstance of the present case."

In view of the law laid down by Hon'ble the Apex Court in

Sahara India (Firm), Lucknow vs. Commissioner of Income

Tax, Central-I & Anr., (2008) XIV SCC 151, we are inclined to

allow the writ petition for we do not find the authority to have

dealt with all the issues raised by the petitioner, material at that,

more so when it entails both civil and penal consequences. The

order passed by the authority is absolutely cryptic, unreasoned and

not dealing with any one of the issues raised by the petitioner. That

apart, on what basis authority has found the petitioner liable to pay

interest is not borne out from the bare reading of the order. The

mind of the authority has to be reflected from the reasoning

furnished, which we find in the instant case to be absolutely non-

existent. A sum of ₹28,95,728/- stands levied as interest upon the

petitioner in terms of the impugned order. Patna High Court CWJC No.16360 of 2021 dt.24-01-2022

Shri Vikash Kumar, learned Standing Counsel No. 11 has

tried to justify the order on the basis of the material, not placed

before the authority but before this Court and that too preceding to

the events leading to passing of the impugned order.

Well, this is unacceptable in law for the authority has to

consider the material placed before itself and the order cannot be

justified on any other material.

As such, we dispose of the present petition in the following

terms:-

(a) We quash and set aside the impugned order

30.07.2021 passed by the Assistant Commissioner, State Tax,

Patliputra Circle, Patna, Respondent No. 3 (Annexure-9) and

Notice of Demand under Section 25 and Section 39 of the

Bihar Value Added Tax Act, 2005 [Notice Id:

N120484903585447] dated 30.07.2021 (Annexure-9/1);

(b) We direct the petitioner to appear before the

Assessing Authority i.e. Assistant Commissioner, State Tax,

Patliputra Circle, Patna, Respondent No. 3 on 7 th of February,

2022 at 10:30 A.M., if possible through digital mode;

(c) On that date, the Assessing Authority shall allow

the parties to place on record fresh materials;

(d) The Assessing Authority shall decide the case on Patna High Court CWJC No.16360 of 2021 dt.24-01-2022

merits after complying with the principles of natural justice;

(e) Opportunity of hearing shall be afforded to the

parties;

(f) During pendency of the case, no coercive steps

shall be taken against the petitioner.

(g) The Assessing Authority shall pass a reasoned

and speaking order assigning reasons;

(h) Petitioner through learned counsel undertakes to

fully cooperate in such proceedings and not take

unnecessary adjournment;

(i) 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;

(j) The Assessing Authority shall supply a copy of

the order to the parties;

(k) Liberty reserved to the petitioner to challenge

the order, if required and desired;

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

recourse to further remedies should the need so arise;

(m) 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, Patna High Court CWJC No.16360 of 2021 dt.24-01-2022

with a reasonable dispatch;

(n) We have not expressed any opinion on merits

and all issues are left open;

(o) 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) Amrendra/PKP AFR/NAFR CAV DATE Uploading Date 27.01.2022 Transmission Date