Shree Azad Transport Company Private LTD. vs. The State Of Bihar Through The Principal Secretary Cum Commissioner
Held
The Court held that the impugned order, Annexure-2 dated 19.12.2022, was issued beyond the seven-day period prescribed under Section 129(3) of the Bihar Goods and Services Act, 2017. Following the precedents set by the Division Bench judgments in Pawan Carrying Corporation vs Commissioner CGST & Central Excise & Ors (C.W.J.C. No. 7985 of 2024) and M/s Kedia Enterprises vs. The State of Bihar & Anr (C.W.J.C. No. 11021 of 2024), the Court found merit in the petitioner's contention. The reasoning was that the procedural requirement of issuing the show cause notice and the subsequent penalty order within the stipulated timeframe was not met. Consequently, the Court set aside the impugned order. The ratio decidendi is that non-compliance with the time limit prescribed under Section 129(3) for issuing a penalty order vitiates the order. The Court directed that Annexure-2 order dated 19.12.2022 shall stand set aside.
Facts
The petitioner, Shree Azad Transport Company Private Ltd., is challenging a penalty order dated 19.12.2022. The petitioner's goods, stored in transit in their godown, were inspected by respondent officers between 15.10.2022 and 17.10.2022. A report was prepared, and some goods were seized on 15.11.2022. A show cause notice was subsequently issued on 06.12.2022, and the impugned penalty order was passed on 19.12.2022. The petitioner contends that both the show cause notice and the penalty order were issued beyond the seven-day period prescribed under Section 129(3) of the Bihar Goods and Services Act, 2017.
Key Issues
1. Whether the show cause notice and the penalty order were issued beyond the seven-day period prescribed under Section 129(3) of the Bihar Goods and Services Act, 2017, rendering them invalid? Petitioner's Argument: The petitioner argues that the show cause notice, issued on 06.12.2022, and the penalty order, dated 19.12.2022, were both issued after the expiry of the seven-day period stipulated in Section 129(3) of the Act. They rely on two Division Bench judgments of the Patna High Court: C.W.J.C. No. 7985 of 2024 (Pawan Carrying Corporation vs Commissioner CGST & Central Excise & Ors) and C.W.J.C. No. 11021 of 2024 (M/s Kedia Enterprises vs. The State of Bihar & Anr) to support their contention. Respondent's Argument: The judgment does not record any specific arguments made by the respondent.
Sections Cited
Section 129(3)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.13899 of 2024 ====================================================== Shree Azad Transport Company Private Ltd., Jai Krishna Road, Patna City, Patna Branch, Patna-800007, through its Manager, Shri Yogendra Kumar Singh, male, aged about-52 years, Son of Sri Bachhan Prasad Singh, Resident of Jai Krishna Road, Patna City, Patna-800007. ... ... Petitioner/s Versus
The State of Bihar through the Principal Secretary cum Commissioner, Department of State Taxes, Govt. of Bihar, Patna.
The Additional Commissioner of State Taxes (Appeals), Patna East Circle, Patna.
The Assistant Commissioner of State Tax, Patna City West, Patna East, Bihar. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Hrishikesh, Advocate For the Respondent/s : Mr. Vivek Prasad, GP-7 ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE NANI TAGIA ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 04-12-2024 The petitioner, a transporter, is concerned with the penalt
The judgment continues below.
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