M/S Amarpali Cylinders Pvt. Ltd vs The State Of Bihar
2022 Latest Caselaw 3007 Patna

Citation : 2022 Latest Caselaw 3007 Patna
Judgement Date : 20 June, 2022

Patna High Court

M/S Amarpali Cylinders Pvt. Ltd vs The State Of Bihar on 20 June, 2022

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.8344 of 2022
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M/s Amarpali Cylinders Pvt. Ltd. MUP IV P, Gidha Industrial Area, Gidha, District Ara through its Authorised Signatory Prakash Singh Bisht, Aged about 45 Years, Gender Male son of Mathura Singh Bisht, Resident of RZ- 49A, Somesh Vihar, Chhawla, P.S. Chhawla, South West Delhi- 110071.

... ... Petitioner/s Versus

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

2. The Additional Commissioner, State Tax (Appeals), Central Division, Patna.

3. The Deputy Commissioner, State Tax, Patna Special Circle, Patna.

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

For the Petitioner/s : Mr.Alok Kumar, 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)

Date : 20-06-2022

Heard learned counsel for the parties.

The petitioner has prayed for the following relief/s : -

(i) For consequential writ or order for quashing of order dated 21.01.2019 passed U/S 73 of GST Act, 2017 whereby the Tax, interest and Penalty to the tune of Rs.49,25,660.89 has been imposed rejecting the claim of Transitional Credit and Demand Notice in Form DRC-07 has been issued in utter violation of the principles of natural justice;

(ii) For issuance of consequential writ or order for quashing of order dated 09.03.2021 issued vide Memo No. 189 dated 09.03.2021 whereby the Appeal preferred by the petitioner has been rejected Patna High Court CWJC No.8344 of 2022 dt.20-06-2022

without application of judicial mind, without considering the grounds of appeal and without giving proper opportunity of produce evidence in support of its claim;

(iii) For further issuance of a direction or order restraining the Respondent NO.3 from taking coercive action for recovery of the amount in demand from the petitioner during the pendency of the present writ petition or for a direction to refund of the amount in case recovered from the petitioner.

(iv) For grant of any other relief or reliefs to which the petitioner is entitled in the facts and circumstances of the case."

It is brought to our notice that vide impugned order dated

09.03.2021, passed by the respondent No.2, namely, the Additional

Commissioner of State Taxes(Appeals), Central Division, Patna in

Appeal Case No. AD100419000233V, the appeal of the petitioner

against the order dated 21.01.2019, issued by the respondent no. 3

namely the Deputy Commissioner, State Tax, Patna Special Circle,

Patna, has been rejected affirming the order of the Assessing

Authority.

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, on merits. Also, during pendency of the

case, no coercive steps shall be taken against the petitioner.

Statement accepted and taken on record. Patna High Court CWJC No.8344 of 2022 dt.20-06-2022

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, contentions raised not considered by the Assessing

Authority as well as the Appellate Authority; (b) order passed does

not assign any reason sufficient, even decipherable from the record,

as to how the officer could determine the amount due and payable

by the assessee. The order 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

09.03.2021, passed by the respondent No.2, namely, the

Additional Commissioner of State Taxes(Appeals), Central

Division, Patna in Appeal Case No. AD100419000233V, the

order dated 21.01.2019, issued by the respondent no. 3,

namely, the Deputy Commissioner, State Tax, Patna Special

Circle, Patna;

(b) We accept the statement of the petitioner that ten Patna High Court CWJC No.8344 of 2022 dt.20-06-2022

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 Authority. This shall be done within

four weeks 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 05.07.2022 at 10:30 A.M.;

(f) The Assessing Authority shall decide the case on

merits after complying with the principles of natural justice;

(g) 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 to be ex parte

in nature:

(h) Opportunity of hearing shall be afforded to the Patna High Court CWJC No.8344 of 2022 dt.20-06-2022

parties to place on record all essential documents and

materials, if so required and desired;

(i) During pendency of the assessment proceeding,

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 before this Court, 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 Patna High Court CWJC No.8344 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

reasonable dispatch;