M/S Ajay Kumar Singh vs The State Of Bihar
2022 Latest Caselaw 1701 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Civil Writ Jurisdiction Case No.3878 of 2022
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M/s Ajay Kumar Singh a Proprietorship firm through its Proprietor Ajay Kumar Singh aged about 47 Years, Gender Male, Son of Chatthu Singh, Resident of Nehru Nagar Arrah, P.S. Arrah, District Bhojpur.

... ... Petitioner/s Versus

1. The State of Bihar through the Secreary Cum Commissioner State Tax, Department of Commercial Taxes, Vikash Bhavan, Bailey Road, Patna.

2. The Additional Commissioner of State Tax (Appeal), Sahabad Circle (Patna West), Patna.

3. The Joint Commissioner of State Tax, Sahadad Circle, Arrah.

4. The Deputy Commissioner of State Tax, Sahabad Circle, Arrah.

5. The Assistant Commissioner of State Tax, Sahabad Circle, Arrah.

6. The Branch Manager, Punjab National Bank, Arrah Branch, Arrah (Bhojpur).

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

For the Petitioner/s : Mr. S.D. Sanjay, Sr. Advocate Mr. Mohit Agarwal, Advocate Ms. Parul Prasad, Advocate Mr. Akshat Agrawal, Advocate Mrs. Sushila Agrawal, Advocate Mr. Anand Kumar, Advocate Ms. Sushmita, Advocate For the Respondent/s : Mr. Vikash Kumar, SC-11 Mr. Kumar Priya Ranjan, SC PNB Mr. Pallav, Advocate Mr. Chandan Kumar, Advocate ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 09-03-2022 Heard learned counsel for the parties.

Petitioner has prayed for the following relief(s):- Patna High Court CWJC No.3878 of 2022 dt.09-03-2022

Patna High Court CWJC No.3878 of 2022 dt.09-03-2022

Patna High Court CWJC No.3878 of 2022 dt.09-03-2022

It is brought to our notice that vide impugned order

dated 18.12.2021 passed by the Additional Commissioner of

State Tax (Appeal), Sahabad Circle (Patna West), Patna in

Appeal Case No. GST/SH-55 of 2020-21, order in Form GST

APL-04 dated 18.12.2021 passed in Order No.

ZD101221011314J (Annexure-7), the appeal of the petitioner

against the order dated 17.01.2021, passed by the Joint

Commissioner of State Tax, Sahabad, Patna West, Bihar in

Reference No. ZD1001210156085 (Annexure-4) and

Summary of the Order in Form GST DRC-07 dated

17.01.2021 (Annexure-4/A) has been rejected.

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.3878 of 2022 dt.09-03-2022

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 reasons sufficient 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. 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.

As such, on this short ground alone, we dispose of the

present writ petition in the following mutually agreeable terms: Patna High Court CWJC No.3878 of 2022 dt.09-03-2022

(a) We quash and set aside the impugned order dated

18.12.2021 passed by the Additional Commissioner of State

Tax (Appeal), Sahabad Circle (Patna West), Patna in Appeal

Case No. GST/SH-55 of 2020-21, order in Form GST APL-04

dated 18.12.2021 passed in Order No. ZD101221011314J

(Annexure-7), order dated 17.01.2021, passed by the Joint

Commissioner of State Tax, Sahabad, Patna West, Bihar in

Reference No. ZD1001210156085 (Annexure-4), Summary of

the Order in Form GST DRC-07 dated 17.01.2021 (Annexure-

4/A) and the order dated 25.02.2022 (Annexure-8);

(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 Patna High Court CWJC No.3878 of 2022 dt.09-03-2022

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 21st of March, 2022 at 10:30 A.M., if possible

through 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;

Patna High Court CWJC No.3878 of 2022 dt.09-03-2022

(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

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 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 Patna High Court CWJC No.3878 of 2022 dt.09-03-2022

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 10.03.2022 Transmission Date