M/S Vikramshila Trading Company vs The State Of Bihar
2022 Latest Caselaw 2883 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                Civil Writ Jurisdiction Case No.7086 of 2022
     ======================================================

M/S Vikramshila Trading Company a Proprietorship Firm having its Place of

Business at Rangaon, Kumar male, aged about 31 Years Son of Surendra

Upadhyay resident of Village-Tarapur, P.S.-Trapur, P.O.-Tarapur, Distt.-

Munger, Bihar-813321

... ... Petitioner/s

Versus

1. The State of Bihar through the Principal Secrertary Cum Commissioner,

Departemnt of State Taxes, Government of Bihar, Patna.

2. The Additional Commissioner of State Taxes (Appeals) Bhagalpur Division,

Bhagalpur.

3. The Assistant Commissioner of State Taxes, Munger Cirlce, Bhagalpur,

(Financial Year 2018-2019).

... ... Respondent/s

====================================================== Appearance :

For the Petitioner/s : Mr.Gautam Kumar Kejriwal, Adv For the Respondent/s : Mr.Vivek Prasad (GP7) ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 17-05-2022 Heard learned counsel for the parties.

Petitioner has prayed for the following relief(s):- Patna High Court CWJC No.7086 of 2022 dt.17-05-2022

Patna High Court CWJC No.7086 of 2022 dt.17-05-2022

It is brought to our notice that vide impugned order

dated 09.03.2022, passed by the Respondent No. 2, namely, the

Additional Commissioner of State Taxes (Appeals), Bhagalpur

Division, Bhagalpur, in Appeal No. AD1003210026019 (Annexure-

5), the appeal of the petitioner against the order dated 18.03.2020

passed by Respondent No. 3, namely, the Assistant Commissioner

of State Taxes., Bhagalpur in GSTIN 10AYCPM5221H1Z0; and

summary of order dated 21.03.2020 in Form GST DRC-07 for the

month of April, 2018 to March, 2019, 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

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 Patna High Court CWJC No.7086 of 2022 dt.17-05-2022

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; (c) 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 ex parte in

nature.

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

09.03.2022, passed by the Respondent No. 2, namely, the

Additional Commissioner of State Taxes (Appeals), Bhagalpur

Division, Bhagalpur, in Appeal No. AD1003210026019

(Annexure-5), order dated 18.03.2020, passed by Respondent

No. 3, namely, the Assistant Commissioner of State Taxes.,

Bhagalpur in GSTIN 10AYCPM5221H1Z0; and summary of

order dated 21.03.2020 in Form GST DRC-07;

(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.7086 of 2022 dt.17-05-2022

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 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 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 01.06.2022 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;

Patna High Court CWJC No.7086 of 2022 dt.17-05-2022

(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;

(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;

Patna High Court CWJC No.7086 of 2022 dt.17-05-2022

(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 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)

ranjan/-

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