Case Title | Rakesh Roshan vs Commissioner of State Tax, Bihar, Additional Commissioner of State Tax Bhagalpur, Assistant Commissioner of State Tax Munger. |
Court | Patna High Court |
Honourable Judges | Justice Sanjay Karol & Justice S Kumar |
Citation | 2022 (5) GSTPanacea 93 HC Patna CJWC No. 6999 of 2022 |
Judgement Date | 17-May-2022 |
Council for Petitioner | Manju Jha |
Council for Respondent | Vivek Prasad |
The Patna High Court bench of Chief Justice Sanjay Karol & Justice S Kumar has held that the order, ex parte in nature, passed in violation of the principles of natural justice, entails civil consequences.
FACTS OF THE CASE
Petitioner proceedings were ex parte in nature. He has prayed for quashing of the below notices & order received,
Petitioner has received notice DRC -01 dated 19.02.2020 demand of tax on ground of excess claim of Input tax credit (ITC) for tax period 2019-20.
Further received order in Form DRC -07 dated 21.03.2020 passed by Adjudicating Authority for demand of tax on ground of excess claim of Input tax credit (ITC) for tax period 2019-20.
Order dated 26.03.2022 for dismissing the appeal for the period 2019-20.
Order dated 29.03.2022 & 30.03.2022 for attaching the bank account for recovery of the whole amount tax, interest and penalty.
Holding & declaring that the case is squarely covered by Judgement dated 08.03.2021 in Suo Moto WPA 3 of 2020 by Hon’ble Supreme Court of India for extension of Limitation due to COVID-19 pandemic.
COURT HELD
Considering the facts as recorded, held that the statutory remedy, is not precluded from interfering where the order ex parte in nature, passed in violation of the principles of natural justice, entails civil consequences. All issues of fact and law ought to have been dealt with, even if the proceedings were to be ex parte in nature.
Thus, the impugned notice dated 19.02.2020, order in Form DRC -07 dated 21.03.2020, order in Form DRC -07 dated 21.03.2020, Order dated 26.03.2022 for dismissing the appeal quashed and set aside and Order dated 29.03.2022 & 30.03.2022 for attaching the bank account for recovery of the whole amount tax, interest and penalty quased.
The Assessing Authority shall pass a fresh order only after affording adequate opportunity to all concerned, including the writ petitioner
ANALYSIS OF THE JUDGEMENT
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 assesses. 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
Assessing Authority shall pass a fresh order the case shall be decided on merits. Also, during pendency of the case, no coercive steps shall be taken against the petitioner.
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Rakesh Roshan
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