M/S Singh Enterprises vs The State Of Bihar
2022 Latest Caselaw 1777 Patna

Citation : 2022 Latest Caselaw 1777 Patna
Judgement Date : 21 March, 2022

Patna High Court

M/S Singh Enterprises vs The State Of Bihar on 21 March, 2022

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.4029 of 2022
     ======================================================

M/s Singh Enterprises through its Proprietor, Ranjan Kumar, S/o S.C. Prasad Singh, aged 54 years Male, resident of 502, Anatpur, Om Sai Apartment, Ranchi, Jharkhand, at Present residing at Jalalpur, DPS More, Bailey road, P.S.-Rupaspur, District-Patna, Pin 801503.

... ... Petitioner/s Versus

1. The State of Bihar through the Commissioner of State Tax, Bihar, New Secretariat, Patna.

2. The Commissioner Of State Tax, Bihar, New Secretariat, Patna.

3. The Additional Joint Commissioner of State Tax (Appeal), Patna West Division, Patna.

4. The Joint Commissioner of Tax, Danapur Circle, Danapur.

5. The Assistant Commissioner of State Tax, Danapur Circle, Danapur.

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

For the Petitioner/s : Mr.Archana Sinha @ Archana Shahi, Adv For the Respondent/s : Mr.Vikash Kumar (SC11) ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 21-03-2022 Heard learned counsel for the parties.

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

"a) For issuance of writ of certiorari, quashing appellate order dated 04.02.22 (Annexure-6) issued by Respondent no. 3 without considering the invoices relied and filed by the petitioner for taking valid input tax credit of Rs. 64,15,206/- and violated the principles of natural justice and further quashing of order dated 12.02.21 and DRC-07 Dated 15.02.21(Annexure-3 series) by which tax of Rs. 72,46,832/- interest of Rs. 13,13,396/- and penalty of Rs. 7,24,682/- was imposed under Sec 73(1), 50(3) and 73(9) of Bihar Goods and Service Tax Act." Patna High Court CWJC No.4029 of 2022 dt.21-03-2022

It is brought to our notice that vide impugned order

dated 04.02.2022, passed by the Respondent No. 3, namely, the

Additional Joint Commissioner of State Tax (Appeal), Patna West

Division, Patna, in Appeal Case No. GST/DN-20/20-21, (ARN-

AD100321002746T, the appeal of the petitioner against the order

dated 12.02.2021, passed by Respondent No. 5, namely, the

Assistant Commissioner of State Tax, Danapur Circle, Danapur, in

GSTIN - 10ADLPK6747J1ZE, under Section 73 of BGST Act,

2017; and summary of order dated 15.02.2021 in Form GST DRC-

07 (Reference No. ZD100221010156H) for the period April 2019

to March, 2020, has been rejected by a cryptic, misconceived and

non-speaking order.

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 Patna High Court CWJC No.4029 of 2022 dt.21-03-2022

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 order dated

04.02.2022, passed by the Respondent No. 3, namely, the

Additional Joint Commissioner of State Tax (Appeal), Patna

West Division, Patna, in Appeal Case No. GST/DN-20/20-21,

(ARN- AD100321002746T, the order dated 12.02.2021,

passed by Respondent No. 5, namely, the Assistant

Commissioner of State Tax, Danapur Circle, Danapur, in

GSTIN - 10ADLPK6747J1ZE, under Section 73 of BGST Act,

2017; and summary of order dated 15.02.2021 in Form GST

DRC-07 (Reference No. ZD100221010156H);

(b) We accept the statement of the petitioner that ten

per cent of the total amount, being condition prerequisite for Patna High Court CWJC No.4029 of 2022 dt.21-03-2022

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 eight 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 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 11.04.2022 at 10:30 A.M.;

(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 Patna High Court CWJC No.4029 of 2022 dt.21-03-2022

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;

(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 Patna High Court CWJC No.4029 of 2022 dt.21-03-2022

recourse to such remedies, before the appropriate forum,

the same shall be dealt with, in accordance with law, with a

reasonable dispatch;