M-Electricals, A Proprietary ... vs The State Of Bihar
2022 Latest Caselaw 2886 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.6927 of 2022
     ======================================================

M-Electricals, a Proprietary Concern Having its Office at Fraser Road, Behind Punjab and Sind Bank, Patna Bihar through its Proprietor Abhinav Mehra (Male, aged about 37 Years) Son of Shri Uday Narayan Mehra Resident of Jay Ganga Niwas, Opp. A.N. College, Rosebud School Lane, Boring Road, Patna, Bihar-800001.

... ... Petitioner/s Versus

1. The State of Bihar through Commissioner of State Tax, Bihar, Patna Having its Office at Vikas Bhawan, Patna.

2. Addl. Commissioner of State Tax (Appeal), West Division, Patna.

3. Asst. Commissioner of State Tax, Central Circle Patna.

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

For the Petitioner/s : Mr. D.V.Pathy, Advocate Mr. Manish Kumar, Advocate Mr. Bijay Kumar Gupta, 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 : 17-05-2022

Heard learned counsel for the parties.

Petitioner has prayed for the following relief(s):- Patna High Court CWJC No.6927 of 2022 dt.17-05-2022

Petitioner has prayed for quashing of the order

passed by Respondent No. 3 namely Assistant

Commissioner of State Tax, Central Circle, Patna in

GSTIN- 10ALIPM4089Q1ZL (Annexure-2); demand

raised in pursuance of the order of assessment (as

contained in Annexure-2) as also the order dated

16.08.2021 passed by Respondent No. 2, namely,

Additional Commissioner of State Tax (Appeal), West

Division, Patna in Appeal Case No. GST/PTC-69/20-21

(Annexure-3).

Both the orders were ex parte in nature.

Learned counsel for the Revenue, states that he has

no objection if the matter is remanded to the Assessing Patna High Court CWJC No.6927 of 2022 dt.17-05-2022

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 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, we dispose of the present writ petition in the Patna High Court CWJC No.6927 of 2022 dt.17-05-2022

following mutually agreeable terms:

(a) We quash and set aside the impugned order

passed by Respondent No. 3 namely Assistant

Commissioner of State Tax, Central Circle, Patna in

GSTIN- 10ALIPM4089Q1ZL (Annexure-2); demand

raised in pursuance of the order of assessment (as

contained in Annexure-2) as also the order dated

16.08.2021 passed by Respondent No. 2, namely,

Additional Commissioner of State Tax (Appeal), West

Division, Patna in Appeal Case No. GST/PTC-69/20-21

(Annexure-3);

(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;

Patna High Court CWJC No.6927 of 2022 dt.17-05-2022

(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 6th of June, 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. Patna High Court CWJC No.6927 of 2022 dt.17-05-2022

(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 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 Patna High Court CWJC No.6927 of 2022 dt.17-05-2022

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 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 18.05.2022 Transmission Date