Pinax Steel Industries Pvt. Ltd VS State of Bihar

On November 30, 2019, a demand notice in Form GST DRC-07 was issued under the powers conferred by Section 73(9) and Section 50 of the Bihar Goods and Services Tax Act, 2017 (referred to as the “Act”). The demand notice pertains to the determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful misstatement or suppression of facts.

The demand notice was issued as part of the proceedings initiated under Section 73 of the Act. Section 73 deals with the determination of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilized for any reason other than fraud or any willful misstatement or suppression of facts. Section 50 of the Act deals with the interest on delayed payment of tax.

The notice indicates that upon examination of the records, it was found that the taxpayer had not complied with the provisions of the Act, leading to the determination of the amount payable along with applicable interest. The notice demands the payment of the determined amount within the stipulated period, failing which further proceedings under the Act will follow.

Petition for Issuance of Writ or Order or Direction

The petitioner seeks judicial intervention to ensure procedural fairness in the assessment process under the Act. The petition requests the following:

1. Issuance of Writ or Order or Direction to Respondents: The petitioner requests that the court issue a writ, order, or direction to the respondents, particularly the respondent assessing authority, to grant an opportunity to file a comprehensive reply and to be heard in the proceedings initiated under Section 73 of the Act.

2. Opportunity to File Comprehensive Reply: The petitioner emphasizes the need for a fair chance to file a detailed response to the demand notice. This includes providing all necessary explanations, documents, and evidence to contest the determination made in the notice.

3. Opportunity for Hearing: The petitioner also seeks an opportunity to be heard in person or through a legal representative before any final decision is made in the proceedings. This hearing would allow the petitioner to present their case, clarify any misunderstandings, and ensure that all relevant facts and arguments are considered by the assessing authority.

The petition underscores the principles of natural justice, which mandate that individuals should be given a fair chance to defend themselves before any adverse action is taken against them. The petitioner asserts that granting such opportunities aligns with the legal and procedural safeguards provided under the Act and ensures transparency and fairness in the assessment process.

This document outlines a case involving the petitioner challenging the issuance of a demand notice in Form GST DRC-07 dated November 30, 2019. The notice was issued under the powers granted by Section 73(9) and Section 50 of the Bihar Goods and Services Tax Act, 2017 (hereinafter referred to as “the Act”).

The petitioner is seeking the following reliefs:

1. Issuance of a Writ or Order for Filing a Comprehensive Reply: The petitioner requests the court to direct the respondent assessing authority to provide an opportunity to file a comprehensive reply. Additionally, the petitioner seeks a hearing in the proceedings initiated under Section 73 of the Act. The petitioner argues that the case should be reconsidered afresh, taking into account all materials and explanations submitted by the petitioner.

2. Declaration Regarding the Respondent’s Actions: The petitioner claims that the respondent assessing authority has not responded to or communicated with the petitioner regarding a petition dated October 19, 2019. This petition, submitted in Form DRC-06, requested additional time in the proceedings. The petitioner contends that the impugned order and the demand notice were issued without fixing a date for further proceedings or considering the petitioner’s request for more time.

The petitioner is challenging the demand notice issued in Form GST DRC-07 dated 30.11.2019 under the Bihar Goods and Service Tax Act, 2017. This notice was issued by the respondent assessing authority in exercise of powers under Section 73(9) and Section 50 of the Act.

Relief Sought:

a) Writ for Fresh Opportunity: The petitioner seeks a writ or order directing the respondent assessing authority to provide an opportunity to file a comprehensive reply and to be heard afresh in the proceedings initiated under Section 73 of the Act. The petitioner believes that all materials and explanations submitted should be duly considered before any decision is made.

b) Violation of Natural Justice: The petitioner claims that the respondent assessing authority did not respond or communicate regarding the petitioner’s application dated 19.10.2019 (submitted in Form DRC-06) which sought additional time for the proceedings. The demand notice and the impugned order were passed without fixing a date for hearing, which the petitioner argues is a denial of the right to an adequate opportunity of hearing and violates principles of natural justice.

c) Declaration of Rights: The petitioner seeks a declaration that, based on the undisputed facts and circumstances of the case, they are entitled to submit their case and be heard on factual and legal issues before any fresh decision is made by the respondent assessing authority in accordance with the provisions of the Act.

d) Additional Reliefs: The petitioner requests any other reliefs they may be entitled to based on the facts and circumstances of the case.

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