Can Revenue authority raise tax and penalty on assesee contrary to the principle of natural justice?

principle of natural justice

Case Title

M/s Bokaro Transport Company Vs State of Jharkhand. And Ors

Court

Jharkhand High Court

Honorable Judges

Justice Aparesh Kumar Singh and Justice Deepak Roshan

Citation

2022 (7) GSTPanacea 226 HC Jharkhand

W.P. (T) No 2722 of 2022.

Judgement Date

06- July -2022

Council for Petitioner

Mr N.K.Pasari

Council for Respondents

Mr P.A.S.Pati

Section

129 & 107

Decision

In the favour of Assessee

The Jharkhand High Court bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan held that if available, remedy to prefer appeal before the appellate authority is correct course of action.

FACTS OF THE CASE

Petitioners is a registered dealer running business of transport. Petitioners transport vehicle was detained by the Respondent Authority and order dated 02.06.2022 for levy of tax & penalty u/s 129(3) was passed on the same day on which detention order u/s 129(1) in Form GST MOV-06 and SCN in Form GST MOV-07 was issued upon the driver. Respondent Authority had not issued summary of order in Form GST DRC-07 to the petitioner on the common portal in accordance with circular no 41/15/2018 dated 20.04.2018 of CGST and circular no 41/2018 dated 20.04.2018 of JGST, due to which petitioner could not prefer an appeal against the order dated 02.06.2022. Petitioner could not prefer an online appeal against the order since it was not uploaded on the common portal. Other difficulty was absence of GSTIN in favour of the owner, since proceedings were conducted against the driver.

Counsel for petitioner submitted that till 16th January,2022 office of Appellate Authority was vacant. Hence on 16th June,2022 the petitioner approached Hon Court for relief against impugned order on the ground that it is clear violation of principles of natural justice and showed willingness to furnish bond for release of his vehicle and approach the Appellate Authority if notified so. 

Counsel of Respondent contended that appeal can be preferred against Form GST MOV-09 even if respondent has not issued Form GST DRC-07 online. He submitted that the petitioner can obtain GSTIN number with Login ID and password from Deputy Commissioner of state taxes, Dumka Circle, Dumka.

principle of natural justice

COURT HELD

Considering the facts as recorded, Hon Court held that since remedy of appeal u/s 107 was made available and petitioner was ready to furnish bond and bank guarantee equivalent to liability fastened. Appellate Authority was directed to release the vehicle in accordance with law on the merits of the case.

principle of natural justice

ANALYSIS OF THE JUDGEMENT

Petitioner must prefer an appeal to appellate authority first if such an option exists.

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M/s Bokaro Transport Company

For Reference Visit:

Jharkhand High Court