The Patna High Court has recently quashed the demand notice and order passed ex-parte against the CICO Patel Joint Venture along with directions to pass fresh order on the merits of the matter.
The Joint Commissioner of State Tax, Patna passed an ex parte order without providing an opportunity of hearing to the petitioner and raised a demand on the basis of excess TDS Credit in GSTR 2A of the petitioner’s employer against the payment made to the petitioner in the period October 2019 to March 2019, Whereas the petitioner declared a lesser amount in their Turnover in the said period in their GSTR3B Returns and an amount of Rs. 92 Lakh was imposed as tax interest and penalty on the petitioner under Section 73(9) of Bihar Goods and Services Tax Act.
The petitioner was represented by Advocate Anurag Saurav.
Revenue, stated that they have 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.
The Department Representative, ASG K N Singh and Standing Counsel Anushman Singh also submitted that revenue shall refrain from taking coercive steps and to decide the case on merits.
The Division bench of Chief Justice Sanjay Karol and Justice Partha Sarthy observed three relevant issues.
Violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case. Order passed being 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 and that the authorities did not adjudicate the matter on the attending facts and circumstances.
It was thus held that, “all issues of fact and law ought to have been dealt with, even if the proceedings were ex parte in nature” and remanded the matter to the Assessing Authority for fresh adjudication.
Learned counsel for the respondent Vivek Prasad undertook to communicate the order to the appropriate authority through electronic mode.
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