A Division Bench of the Patna High Court has recently quashed the ex-parte Goods and Services Tax (GST) assessment order passed against the petitioner in violation of the natural justice principles.
The petitioner, served with summary assessment orders pertaining to the Financial Year 2018-2019, whereby a total liability of Rs.10.06 Lakhs had been imposed, approached the High Court of Patna with the present Writ Petition.
Gyan Shankar, the counsel for the petitioner-Balram Singh, prayed to issue a writ of mandamus directing the Respondents to refund a sum of approximately 20 Lakh Rupees which has been seized by the respondents from the cash credit ledger of the petitioner by way of recovery against the total liability.
The petitioner also prayed to set aside the assessment order passed against him and to direct the revenue to consider the matter afresh on grounds of violation of natural justice.
ASG Dr. K N Singh along with Anshuman Singh and Vivek Prasad, for the Revenue, stated 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.
Observing the ex parte nature of the order, passed in violation of natural justice principles, without giving the assessee an opportunity to be heard, without assigning sufficient reasons about the determination of the tax amount due and payable by the assessee, the High Court Bench of Chief Justice Sanjay Karol and Justice Partha Sarthy set aside the impugned order.
It was also directed that “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” and “The Assessing Authority shall pass a speaking order, assigning reasons, copy whereof shall be supplied to the parties”.
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