The Patna High Court quashed the GST Authority’s demand as it was violative of Principles of Natural Justice.
The petitioner, Sky Vision Media Private Limited has assailed the ex-parte order and summary of order in form GST DRC 07 under rule 142 (5) of the Bihar Goods And Services Tax Rules, 2017 passed and issued by the respondent under section 73 (1) of the Bihar Goods And Services Tax Act, 2017.
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.
The division bench headed by Chief Justice Sanjay Karol and Justice S. Kumar held that notwithstanding the statutory remedy, is not precluded from interfering where, ex facie, we form an opinion that the order is bad in law.
The court court said this for two reasons namely violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case; secondly, 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.
The court quashed and set aside the impugned order passed by the Respondent namely the Assistant Commissioner of State Taxes, North Circle, Patna, under Section 73(I) of BGST Act, 2017 and summary of order in Form GST DRC-07.
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