A Division Bench of the Patna High Court (HC), quashed order passed without considering submissions of petitioner, Pamm Advertising and Marketing Office holding that there is gross violation of natural justice principles.
The writ petition has been filed by the petitioner under Article 226 of the Constitution of India, wherein the relief sought includes setting aside the order passed by the Assistant Commissioner of State Taxes, Patna whereby the tax, interest and penalty of Rs. 12 lakhs have been imposed in exercise of jurisdiction under Section 74 of the Bihar Goods and Services Tax Act, 2017.
The petitioner further prays for setting aside the appellate order passed by the Additional Commissioner (Appeal) State Taxes whereby appeal filed by the petitioner has been dismissed without considering the points taken by the petitioner.
The Counsel for the Revenue, states that there is 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 Bench comprising Chief Justice Sanjay Karol and Justice Partha Sarthy made a detailed analysis regarding the case. The Bench were of the opinion that the order is bad in law and gave the following reasons: (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
(b) 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 further observed 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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