The importance of principles of natural justice and fair opportunity of hearing in determining the amount due and payable by the assessee.

JUDGMENT

Sanjay Karol, CJ. - Petitioner has prayed for the following relief(s):

"(i) For issuance of writ in the nature of mandamus for directing the Respondent No. 2 to consider the case of the Petitioner for rectification of errors apparent on the face of the record under Section 161 of the Bihar Goods and Services Tax Act, 2017 (herein after to be referred as The Act).

(ii) For issuance of writ in the nature of certiorari for quashing of notice dated 01.03.2021 issued under Section 79 of the Act to the Indian Bank for attaching the account of the petitioner for payment of Rs. 1,46,88,724/-

(iii) For any other consequential relief/reliefs for which the petitioner is entitle by this Hon'ble Court in the facts and circumstances of the present case."

2. It is brought to our notice that vide impugned order dated 01.03.2021 passed by the Respondent No. 2 namely the Joint Commissioner of State Tax, Kadam Kuan Circle, Patna under Memo No. 879A dated 01.03.2021, whereby notice under Section 79 of the Bihar Goods and Service Tax Act, 1917 has been issued to the Indian Bank for attaching the account of the petitioner for payment of Rs. 1,46,88,724/- .

3. Having heard learned counsel for the parties, we are of the considered view that the issue would be best resolved, with the consideration of the petitioner's application filed under Section 161 of the Bihar Goods and Service Tax Act, 1917 in accordance with law.

4. Learned counsel for the Revenue, states that he has no objection if the matter is remanded to the Assessing 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.

5. Statement accepted and taken on record.

6. 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 sufficient reasons 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. As such, on this short ground alone, we dispose of the present writ petition in the following mutually agreeable terms:

(a) We quash and set aside the impugned order dated 01.03.2021 passed by the Respondent No. 2 namely the Joint Commissioner of State Tax, Kadam Kuan Circle, Patna under Memo No. 879A dated 01.03.2021;

(b) We accept the statement of the petitioner that ten per cent of the total amount, being condition prerequisite for hearing of the case, 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.

(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 9th of August, 2021 at 10:30 A.M., if possible through digital mode;

(g) Al