Case Title | Rakesh Roshan (Proprietory concern) Vs State of Bihar through Commissioner of State Tax Additional Commissioner of State Tax Assistant Commissioner of State Tax |
Court | Patna High Court |
Honorable Judges | Justice S. Kumar |
Citation | 2022 (5) GSTPanacea 111 HC Patna |
Judgement Date | 17-May-2022 |
Council for Petitioner | Manju Jha Advocate |
Council for UOI | |
Council for State | Vivek Prasad GP-7 |
The Delhi High Court bench of Justice S Kumar has held that Assessee should be given proper opportunity of being heard before giving any demand notice under section 73 and section 74 of CGST Act,2017
FACTS OF THE CASE
The petitioner has been served the notice dtd 19th Feb 2020 by Asst. Commissioner of state tax (respondent1) , summary order dated 21st Mar 2020 by Ass. Commissioner by demanding the dues in form DRC-07.
Assesee filed and appeal to Additional Commissioner of State Tax , Bihar , which was rejected by concerned on 26th Mar 2020, Assessee served DRC-13 by recovering the dues in another mode (i.e recovery through debtors/ attaching bank accounts etc.)
It has also submitted also that he has no objection if the matter is remanded to assessing authority afresh, and the case is to be treated on merits, also no corceive action should be taken during proceedings of the case against assessee.
COURT HELD
Court held here by in this matter reserved and declared its order primarily on two main reason basis 1. Prinicipal of natura justice violation i.e fair opportunity of being heard 2. Order passed is ex parte in nature i.e how the officer can determine the dues payble by assessee.
Hence this court quashes the order dated 19th Mar 2020, 21st Mar 2020 and 26th Mar 2020 and also directs the petitioner(assessee) to deposit 10% of the amount disputed as pre requisite condition of hearing appeals and shall be deposited within 4 weeks of this order.
This courts also directs to de freeze all the attached banks accounts of assessee immediately.
Petitioner shall present before appellate authority at 6th June 2022 dtd 10:30 AM if possible virtually.
ANALYSIS OF THE JUDGEMENT
Appellate Authority must give fair and proper opportunity of being heard before passing any order for recovering the due amount (interest/tax/penalty etc.) . No demand shall be ex parte decided by authority without assessee representation of assessee.
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Rakesh Roshan (Proprietory concern)
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Patna High Court