M S Scientifics And Aqua Systems vs State Of Bihar
2022 Latest Caselaw 3003 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.7558 of 2022
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M S Scientifics and Aqua Systems a proprietary concern having its office at Bhatkhora, Madhepura, Bhatkhori Murliganj, Madhepura, Bihar 852114 through its proprietor Harish Menon (Male, aged about 46 years) son of Late A.P Menon resident of 12-5-23/2 S1, Navjeevan Apartments, Vijayapuri Colony, Tarnaka, Secunderabad, Hyderabad, Andhra Pradesh - 500017.

... ... Petitioner/s

Versus

1. State of Bihar through Commissioner of State Tax, Bihar, Patna having its office at Vikas Bhawan, Patna.

2. Asst., Commissioner of State Tax, Danapur, West, Patna.

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

For the Petitioner/s : Mr.D.V.Pathy, Advocate For the Respondent/s : Mr.Vikash Kumar ( S.C. 11 ) ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 20-06-2022

Heard learned counsel for the petitioner and the

learned counsel for the respondents.

Petitioner has sought for following relief(s) : -

(i) the summary of show cause notice dated 23.12.2020 (as contained in Annexure-3) issued by the respondent no.2 for the Tax Period April 2019 to March, 2020 be quashed.

(ii) the summary of show cause notice dated 29.12.2020 issued by the respondent no.2 under Section 73 of the Bihar Goods and Services Tax Act, 2017 in Form DRC 01 (as contained in Annexure-4 series) for the Tax Period April, 2019 to March, 2020 be quashed.

(iii) the order dated 04.02.2021 (as contained in Annexure-5) passed by the Patna High Court CWJC No.7558 of 2022 dt.20-06-2022

respondent no.2 under Section 73 (9) of the Bihar Goods and Services Tax Act, 2017 for the period April, 2000 22.06.2020 (FY 20-21) be quashed.

(iv) the order dated 14.02.2021 (as contained in Annexure-6) passed by the respondent no.2 under Section 73(9) of the Bihar Goods and Services Tax Act, 2017 for the Tax Period April, 2019 to March,2020 be quashed.

(v) the order dated 14.02.2021 (as contained in Annexure 6) passed by the respondent no.2 under Section 73(9) of the Bihar Goods and Services Tax Act, 2017 for the Tax Period April 2019 to March, 2020 prior to insertion of sub clause (aa) in Section16(2) of the Act 13 of 2021 w.e.f. 01.01.2022 be quashed.

(vi) the notice of demand dated 14.02.2021 (as contained in Annexure-6 series) issued by the respondent no.2 for the Tax Period April, 2019 to March, 2020 be quashed.

(vii) For granting any other relief

(s) to which the petitioner is otherwise found entitled to."

It is prayed that the impugned orders dated

04.02.2021 and 14.02.2021 passed by the Respondent No. 2 namely

the Assistant Commissioner of State Tax, Danapur West, Patna in

GSTIN 10AIRPM9012H1ZC, under Section 73(9) of BGST Act,

2017 and summary of show cause in Form GST DRC-01 dated

23.12.2020 and 29.12.2020, for the tax period April, 2019 to

March,2020, have been passed without following the principles of

natural justice and the same may be quashed.

Learned counsel for the Revenue, states that he has no

objection if the matter is remanded to the Assessing Authority Patna High Court CWJC No.7558 of 2022 dt.20-06-2022

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, 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 orders dated

04.02.2021 and 14.02.2021 passed by the Respondent No. 2

namely the Assistant Commissioner of State Tax, Danapur Patna High Court CWJC No.7558 of 2022 dt.20-06-2022

West, Patna in GSTIN 10AIRPM9012H1ZC, under Section

73(9) of BGST Act, 2017 and summary of show cause in Form

GST DRC-01 dated 23.12.2020 and 29.12.2020;

(b) The 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

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 18th of July, 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 Patna High Court CWJC No.7558 of 2022 dt.20-06-2022

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

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 Patna High Court CWJC No.7558 of 2022 dt.20-06-2022

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 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)

( S. Kumar, J)

K.C.Jha/chn AFR/NAFR CAV DATE Uploading Date 25.06.2022 Transmission Date