Patna High Court quashes summary revised GST demand as no opportunity of hearing was afforded [Read Order]

The Patna High Court quashed the summary revised GST demand as no opportunity of hearing was afforded.

The petitioner, Manoj Kuma sought to quash the communication in form GST APL-04 issued by the respondent whereby the appeal preferred by the petitioner against the order passed by the respondent under section 74 of the Bihar Goods and Services Tax Act, 2017 has been rejected and a summary revised demand has been forwarded to the petitioner.

The Revenue has 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 the pendency of the case, no coercive steps shall be taken against the petitioner.

The division bench of Chief Justice Sanjay Karol and Justice S. Kumar while quashing the impugned order noted that there was 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; 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.

We accept the statement of the petitioner that ten percent 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), the same shall be done before the next date. Further, the petitioner undertakes to additionally deposit ten percent of the amount of the demand raised before the Assessing Officer. This shall be done within four weeks,” the court said.

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