M/S Idea Event Management v. The Union Of India
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.7226 of 2022 ====================================================== M/s Idea Event Management through its sole proprietor, male aged about 62 years, having its registered office at - South Mandiri, P.S. Kotwali, DistrictPatna. ... ... Petitioner/s
Versus
1.
The Union of India through the Secretary, Ministry of Finance (Department of Revenue), Government of India, New Delhi.
2.
The Under Secretary, Ministry of Finance (Department of Revenue), Government of India, New Delhi.
3.
The State of Bihar through the Chief Secretary, Government of Bihar, Patna. 4.
The Principal Secretary, Department of Finance, Government of Bihar, Patna.
5.
The Joint Commissioner State Tax (J.C.S.T.), Patna West Circle, Patna. 6.
The Assistant Commissioner State Tax, Gandhi Maidan, Patna. ... ... Respondent/s ====================================================== Appearance :
For the Petitioner/s :
Mr.Uday Prasad Singh, Advocate For the Respondent/s :
Dr. K.N. Singh, ASG Mr. Anshuman Singh, Sr. SC, CGST & EX Mr. Vivek Prasad, GP-7 ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 20-06-2022 Petitioner has prayed for the following relief(s): "For quashing of the Letters/demand Notices dated 25.01.2020 issued vide reference No. ZD100120011480T, ZA100120011486H issued by Respondent No. 7 as contained in Annexure- Series, by which the petitioner has been directed to pay Total CGST/SGST Tax
2/7 amount of Rs.68,432/-, 1,69,996/- plus interest applicable as per under section 73(1) for the period Financial Year 2018-19, which are not only illegal but arbitrary exercise by power vested to them as well as without any jurisdiction and beyond the terms and conditions mentioned in the respective Tenders/Bids/Agreement, and also for quashing of order dt. 04/03/22 passed in Appeal no ARN - AD10072100054, AD100721000547P pleased to passed the impugned order in most arbitrary, unreasonable and malafide manner exceeding its jurisdiction, wherein he has override the statue and in order to grant undue favour to provide revenue and has over looked even the order of apex court and Hon'ble court also. The impugned order are unreasonable and has been passed in an utter violation of the principle of natural justice."
It is brought to our notice that vide impugned common order dated 04.03.2022 passed by respondent No. 5, namely the Additional Commissioner of State Tax (Appeal) West Circle, Patna in Appeal Nos. ARN AD1007210005411 and AD100721000547P, the appeals of the petitioner against the demand notices dated 25.01.2020 passed by respondent No. 7, namely The Assistant Commissioner State Tax, Gandhi Maidan, Patna, issued vide Reference Nos.ZD100120011480T and ZA100120011486H under Section 73(1) of CGST/SGST Act, 2017;
3/7 for the period financial year 2018-19, have been rejected without considering the contentions raised by the petitioner. 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.
Statement accepted and taken on record.
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
4/7 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.
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 common order dated 04.03.2022 passed by respondent No. 5, namely the Additional Commissioner of State Tax (Appeal) West Circle, Patna in Appeal Nos. ARN AD1007210005411 and AD100721000547P, and the demand notices dated 25.01.2020 passed by respondent No. 7, namely The Assistant Commissioner State Tax, Gandhi Maidan, Patna, issued vide Reference Nos.ZD100120011480T and ZA100120011486H under Section 73(1) of CGST/SGST Act, 2017;
(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 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
5/7 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 28th of July, 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 of the case, no coercive steps shall be taken against the petitioner.
(j) The Assessing Authority shall pass a fresh order
6/7 only after affording adequate opportunity to all concerned, including the writ petitioner;
(k) Petitioner through learned counsel undertakes to fully cooperate in such proceedings and not take unnecessary adjournment;
(l) The Assessing Authority shall decide the case on merits expeditiously, preferably within a period of two months from the date of appearance of the petitioner; (m) The Assessing Authority shall pass a speaking order, assigning reasons, copy whereof shall be supplied to the parties;
(n) Liberty reserved to the petitioner to challenge the order, if required and desired;
(o) Equally, liberty reserved to the parties to take recourse to such other remedies as are otherwise available in accordance with law;
(p) We are hopeful that as and when petitioner takes recourse to such remedies, before the appropriate forum, the same shall be dealt with, in accordance with law, with a reasonable dispatch;
(q) We have not expressed any opinion on merits and all issues are left open;
7/7 (r) If possible, proceedings during the time of current Pandemic [Covid-19] be conducted through digital mode;
The instant petition sands disposed of in the aforesaid terms.
Interlocutory Application(s), if any, also stands disposed of.
Learned counsel for the respondents undertakes to communicate the order to the appropriate authority through electronic mode.
(Sanjay Karol, CJ) ( S. Kumar, J) K.C.Jha/DKS AFR/NAFR CAV DATE Uploading Date 30.06.2022 Transmission Date