The court can intervene and set aside an order if it finds a violation of principles of natural justice and lack of reasons in the order, even if there is a statutory remedy available.

JUDGMENT :

Sanjay Karol, J.

Heard learned counsel for the parties.

Petitioner has prayed for the following relief(s):-

(i) For issuance of an appropriate writ/order/direction for setting aside order bearing reference no. ZD1005220088470 dated 25.05.2022 passed by Joint Commissioner of State Tax Jurisdiction, Sahabad Circle, Aarah, Bihar, whereby and where under respondent rejected the Input Tax Credit Claim of the petitioner against the purchase made by the Petitioner after payment of tax amount and issuance of Tax Invoice from “JVL AGRO INDUSTRIES LIMITED” on the ground that “JVL AGRO INDUSTRIES LIMITED” had not furnished monthly return in Form of GSTR-3R from July 2017 to March 2017 (Financial Year 2017-18) and it has been alleged in Assessment order that the petitioner had taken Input Tax credit to meet the demand in violation of provision of section 16(2)(c) of BGST Act.

(ii) For setting aside order dated 25.05.2022 passed by Joint Commissioner of State Tax Jurisdiction, Sahabad Circle, Aarah has rejected the input tax credit of the petitioner and imposed the tax including tax and penalty amounting of Rs. 8,43,770/- on the petitioner under section 73(9) of BGST Act and a direction was issued to raised demand in the Form of GST DRC 07.

(iii) For setting aside the demand notice issued in the Form of DRC 07 bearing Reference No. ZD1005220088470 dated 25.05.2022, whereby and where under an amount of Rs. 8,43770/- has been imposed as Tax, Interest and Penalty.

(iv) For setting aside Order dated 07.11.2022 issued by respondent no.3 whereby and where under a direction was made to issue Form DRC-13 for attachment of Bank Account of the Petitioner.

(v) For setting aside DRC-13 issued by Assistant Commissioner of State Tax, Sahabad Circle, Aaraha vide Reference Recovery No. 318 Dated 07.11.2022 to Punjab National Bank, Station Road, Ara to attached the Bank Account of the Petitioner and recover an amount of Rs. 13,30,464/-.

(vi) For releasing all of the Bank Account of the petitioner which has been attached by the respondent authorities.

(vii) For issuance of an appropriate Writ(s), order(s), and/or direction(s), as Your Lordships may deem fit and proper in the facts and circumstances of this case in the interest of justice.

2. It is brought to our notice that vide impugned order dated 25.05.2022, passed by the Respondent No. 2, namely, the Joint Commissioner of State Tax, Sahabad Circle, Araha, Bihar (Ref. No.ZD1005220088470) and demand notice in Form GST DRC-07 dated 25.05.2022 (Ref. No. ZD1005220088470), for the period July, 2017 to March, 2018, a demand of Rs.8,43,770/- has been raised. The petitioner has also prayed for quashing of the order dated 07.11.2022, passed by respondent No.3, namely, the Assistant Commissioner of State Tax, Sahabad Circle, Aaraha, Bihar issued in Form DRC-13 whereby bank account of the petitioner has been attached.

3. 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.

4. Statement accepted and taken on record.

5. 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 reasons sufficient 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,