M K Traders vs. The State Of Bihar

The petitioner has filed the present writ application for setting aside the appellate order, dated 04.09.2024, passed by the Additional Commissioner of State Taxes (Appeals), Darbhanga Division, Darbhanga, in Appeal No. AD100424000493U, whereby the statutory appeal of the petitioner has been rejected without examining the merits of the case. The petitioner has further prayed for quashing of assessment order, dated 06.01.2024, passed by Assistant Commissioner of State Taxes, Samastipur Circle, Samastipur, for the tax period of April, 2018 to March, 2019, whereby a demand of Rs. 2,00,58,126/- has been raised against the 2/4 petitioner.

Learned counsel for the petitioner submits that assessing authority, on the basis of audit proceeding for the financial year 2018-19, issued show-cause notice under Section 73 of Bihar Goods and Services Tax Act, 2017 (in short “BGST”). It has further been submitted that without proper consideration of the facts of the case and without granting proper opportunity of hearing, the respondent-authority proceeded to pass the summary order FORM GST DRC-07, dated 06.01.2024, raising a huge demand against the petitioner.

The petitioner, being aggrieved by the order, dated 06.01.2024, passed by the respondent-Assistant Commissioner of State Taxes, filed an appeal before the appellate authority, bearing Appeal No. AD100424000493U. The appellate authority without giving any opportunity of hearing has rejected the appeal filed by the petitioner.

It has also been informed that savings account of the petitioner maintained with State Bank of India has been put on hold for an amount of Rs. 2,82,53,287/- causing severe financial hardship to the petitioner.

Mr. Vivek Prasad, GP-7, learned for the state, on the other hand, submits that from perusal of the order passed by the appellate authority it would be evident that several 3/4 opportunities were given to the petitioner to appear for hearing in the appeal, but the petitioner failed to appear and to produce any document or evidence before the appellate authority which led to passing of the order, dated 04.09.2024, by the appellate authority. However, without prejudice to the aforesaid, learned counsel submits that there is provision for filing appeal before the appellate tribunal under Section 112 of the BGST and the petitioner may avail the statutory remedy before the tribunal which has started functioning.

Having regards to the submission made by the parties and taking into consideration the fact that the petitioner has remedy to file an appeal before the appellate tribunal, accordingly, the present writ application is disposed with liberty to the petitioner to file an appeal before the tribunal on or before 31st July, 2026. 7. It is made clear that if an appeal is filed by the petitioner before tribunal, the tribunal shall consider and decide the same in accordance with law.