Sudhir Kumar Jha @ Sudheer Kumar Jha vs. The State Of Bihar

Facts

The petitioner, Sudhir Kumar Jha, challenged an undated order passed by the Assistant Commissioner, State Taxes, Patna South Circle, Patna, under Section 73(9) of the Bihar Goods and Services Tax Act, 2017. This order imposed tax and interest for May 2019. The petitioner contended that the notice issued under Section 73(1) on January 5, 2021, which provided a reply deadline of January 22, 2021, violated the mandatory 30-day notice period required by law. The consequential demand of Rs. 4,69,190/- in DRC-07 dated February 10, 2021, was also challenged as it was based on the aforementioned order. The revenue did not dispute the facts regarding the notice period.

Held

The Court held that the statutory period of 30 days mandated under Section 73(8) of the Bihar Goods and Services Tax Act, 2017, was not afforded to the petitioner. The notice dated January 5, 2021, directed the petitioner to file a reply by January 22, 2021, which was within the prescribed 30-day period, thus violating the mandate of law. Consequently, the Court quashed the notice dated January 5, 2021, and the order of assessment dated February 10, 2021. The Court directed the assessing officer to issue a fresh notice in light of the statutory provisions and pass an appropriate order in accordance with the law. The petitioner undertook to appear before the Assessing Authority on March 28, 2022, and cooperate fully. The Assessing Authority was directed to take a decision within four weeks thereafter. The ratio decidendi is that failure to provide the mandatory statutory notice period vitiates the subsequent proceedings and orders.

Key Issues

1. Whether the notice dated January 5, 2021, issued under Section 73(1) of the Bihar Goods and Services Tax Act, 2017, providing a reply deadline of January 22, 2021, afforded the mandatory 30 days' notice period to the petitioner, thereby complying with Section 73(8) of the Act? 2. Whether the order of assessment dated February 10, 2021, passed under Section 73(9) of the Bihar Goods and Services Tax Act, 2017, is liable to be set aside due to the violation of the mandatory notice period? Petitioner's Contention: The petitioner argued that the notice issued on January 5, 2021, demanding a reply by January 22, 2021, was in gross violation of the principle of natural justice and Section 73(8) of the Bihar Goods and Services Tax Act, 2017, which mandates a 30-day notice period. They relied on a previous judgment of the High Court in CWJC No. 3374/2021 dated October 28, 2021, which emphasized this requirement. Revenue's Contention: The revenue did not dispute the facts regarding the notice period not being afforded. They agreed to the direction for issuing a fresh notice.