The assessment order issued without proper notice and outside statutory limitation is invalid, emphasizing the necessity of compliance with the principles of natural justice.

JUDGMENT :

RAJEEV RANJAN PRASAD, J.

1. The petitioner has prayed for the following reliefs:-

i) the order dated 21.02.2019 (as contained Annexure-5) passed by respondent no. 2 for the period 1999-2000 under section 17(3) of the BIHAR FINANCE ACT , 1981 made available on 05.11.2020 be quashed.

ii) the notice of demand dated 21.02.2019 (as contained in Annexure-4) served on 21.10.2020 issued by the respondent no. 2 be quashed.

iii) for granting any other relief (s) to which the petitioner is otherwise found entitled to.

Brief Facts

2. Mr. S.D. Sanjay, learned Senior counsel for the petitioner submits that the petitioner is a Public Sector Undertaking of the Government of India. It is engaged in the business of marketing of petroleum products. In the assessment for the period 1999-2000 under Section 17(3) of the BIHAR FINANCE ACT , 1981 (hereinafter referred to as the ‘Act of 1981’), the Commercial Taxes Officer, Special Circle, Patna (in short ‘CTO’) determined the gross turnover of the petitioner at Rs. 54,63,46,08,715/- on estimate. The CTO also made several disallowances in the assessment.

3. It is submitted that being aggrieved by the order of assessment (Annexure ‘1’ series to the writ application), the petitioner preferred an appeal before the Joint Commissioner of Commercial Taxes (Appeals), Central Division, Patna but the same was dismissed vide order dated 02.09.2004 in Appeal Case No. 288/289 of 2003.

4. Thereafter, the petitioner preferred a revision application before the learned Commercial Taxes Tribunal, Bihar, Patna challenging the order of the appellate authority on various grounds. In revision, the learned Tribunal held that the estimation of gross turnover without any basis was not justified and the other disallowances were also not justified. Thus, the learned Tribunal set aside the order of the appellate authority and issued a direction to the assessing authority to pass an order of assessment de novo. In its order dated 25.08.2017 (Annexure ‘3’ to the writ application), the learned Tribunal specifically directed the assessing authority to grant an opportunity of hearing to the petitioner. The said order of the Tribunal was communicated to the Deputy Commissioner, Commercial Taxes, Special Circle, Patna through Memo No. 506 dated 30.08.2017.

5. The grievance of the petitioner is that the assessing authority did not issue any notice to the petitioner in compliance of the order of the Tribunal. No opportunity for production of requisite books and other documents for completion of fresh assessment proceedings was provided to the petitioner. Since there was no notice to the petitioner and the period of limitation, which is two years in terms of proviso to Section 24 of the Act of 1981, elapsed, the petitioner company filed an application for refund. After receipt of the application of the petitioner-company seeking refund, the respondent no. 2 sent an email on 21.10.2020 by which a demand notice in pursuance to an order purported to have been passed on 21.02.2019 was served upon the petitioner-company. It is submitted that only the demand notice was sent by mail on 21.10.2020, but the order of assessment was not communicated in the said mail. A copy of the notice of demand dated 21.02.2019 issued by respondent no. 2 along with email served on 21.10.2020 has been annexed and marked as Annexure ‘4’ series to the writ application.

6. It is submitted that after receipt of the notice of demand, the petitioner filed an application on 02.11.2020 for obtaining the certified copy of the order of assessment said to have been passed pursuant to t