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IN THE HIGH COURT OF JUDICATURE AT PATNA
SANJAY KAROL, S. KUMAR, JJ.
M/s AST Telecom Solar Pvt. Ltd. – Petitioner
Versus
The Union of India through its Secretary and Commissioner, New Delhi – Respondent
Civil Writ Jurisdiction Case No. 9136 of 2022
Decided On : 14-07-2022
Natural Justice - Tax Appeal - The court quashed the impugned order and directed the Assessing Authority to decide the case on merits after affording adequate opportunity to all concerned, including the writ petitioner.
Fact of the Case:
The petitioner's appeal against the order of the Deputy Commissioner of State Taxes was rejected, citing violation of principles of natural justice and lack of sufficient reasons for determining the amount due and payable.
Finding of the Court:
The court quashed the impugned order and directed the Assessing Authority to decide the case on merits after affording adequate opportunity to all concerned, including the writ petitioner.
Issues: Violation of principles of natural justice, lack of sufficient reasons for determining the amount due and payable.
Ratio Decidendi: The court can interfere if the order is bad in law, especially in cases of violation of natural justice and lack of sufficient reasons for determining the amount due and payable.
Final Decision: The impugned order was quashed, and the Assessing Authority was directed to decide the case on merits after affording adequate opportunity to all concerned, including the writ petitioner.
JUDGMENT :
SANJAY KAROL, J.
1. Heard learned counsel for the parties.
2. The petitioner has prayed for the following reliefs:
3. It is brought to our notice that vide impugned order dated 24.03.2022 passed by the Respondent No. 6, namely the Additional Commissioner (Appeal), SGST, Patna, Central Division, Patna in Case No. AD100719000172P, the appeal of the petitioner against the order dated 19.06.2019 passed by Respondent No. 4, namely The Deputy Commissioner of State Taxes, Patna Special Circle, under Sections 73 of BGST Act, 2017 and summary of order dated 19.06.2019 in Form GST DRC-07 for the period 1.7.2017 to 31.03.2018, has been rejected.
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 and the limitation shall not be allowed to come in the way. 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; (c) We also find the 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 ex-parte in nature.
7. As such, on this short ground alone, we dispose of the present writ petition in the following mutually agreeable terms:
(b) We accept the statement of the petitioner that ten per cent of the total amount, being condition prerequisite for hearing of the appeal, already stands deposited. If that were so, well and good. However, if the amount is not deposited for whatever reasons, 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 accounts 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 16th of August, 2022 at 10:30 A.M. if possible through digital mode.
(g) The Assessing Authority shall decide the case on merits after complying with the principles of natural justice.
(h) Opportunity of hearing shall be afforded to the parties to place on record all essential documents and materials, if so required and desired.
(i) During pendency
The court can interfere if the order is bad in law, especially in cases of violation of natural justice and lack of sufficient reasons for determining the amount due and payable.
The court can interfere with an order if it violates principles of natural justice and lacks reasons for determining the amount due and payable by the assessee.
The violation of principles of natural justice and the lack of sufficient reasons for determining the amount due and payable by the assessee can lead to the quashing of orders.
The Court can interfere with an order if it violates principles of natural justice, and the Assessing Authority must decide the case on merits after affording adequate opportunity to all concerned.
The central legal point established in the judgment is that courts can interfere with orders that are bad in law, especially those involving violation of principles of natural justice and non-speakin....
Violation of principles of natural justice and lack of sufficient reasons for determining the amount due and payable by the assessee.
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