The Patna High Court quashed the summary of order in Form GST DRC-07 for violating the principles of natural justice.
The division bench headed by the Chief Justice, Sanjay Karol and Justice Rajan Gupta quashed the oder on the grounds of violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case; and 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 petitioner, M/s K.R. Steel Traders accepted the statement of the petitioner that ten per cent of the total amount, being a 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.
The court further directed 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.
“The Assessing Authority shall pass a fresh order only after affording adequate opportunity to all concerned, including the writ petitioner,” the court ordered.
“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;” the court said.
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