Rajendra Prasad Yadav vs. State Of Bihar
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The petitioner, Rajendra Prasad Yadav, is aggrieved by an assessment order dated March 9, 2024, for the year 2017-18. A show cause notice under Section 74 of the Bihar Goods and Services Tax Act was issued on September 29, 2023. The next day, another show cause notice for the same assessment year was issued. This second notice was subsequently dropped on December 29, 2023. The petitioner claims they were unaware of the assessment proceedings because the matter was dropped and therefore did not participate. The petitioner filed a writ petition before the High Court on May 15, 2024.
Held
The Court held that while the petitioner claimed to be unaware of the assessment due to the dropping of one show cause notice, the initial show cause notice was indeed issued, and there was no reason to believe the petitioner was not aware of it. Therefore, the Court was not inclined to grant a remand for participation in the assessment. However, acknowledging that Section 107 of the Act provides for an appeal within three months and that the writ petition was filed within this period, the Court decided to grant the petitioner an opportunity to file an appeal. The first appellate authority was directed to consider the appeal on its merits without looking at the delay, as the delay was occasioned by the petitioner challenging the assessment order in the writ petition. The writ petition was allowed without any observation on the merits of the assessment.
Key Issues
1. Whether the petitioner, having not participated in the assessment proceedings due to the dropping of one show cause notice, should be granted an opportunity to participate in the assessment process or file an appeal. This issue turns on the interpretation of principles of natural justice and procedural fairness under the Bihar Goods and Services Tax Act. The petitioner argued that due to the dropping of the second show cause notice, they were unaware of the ongoing assessment and thus could not participate. They sought an opportunity to be heard. The respondent State did not record any specific argument against granting an opportunity but highlighted the petitioner's awareness of the initial show cause notice.
Sections Cited
Section 74, Section 107
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Cause title — parties, addresses and appearances
ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 29-07-2024
The petitioner is aggrieved with Annexure P4 order of assessment for the year 2017-18, which assessment order was passed on 09.03.2024. 2. On the brief facts to be noticed, by Annexure P1, a show cause notice was issued under Section 74 of the Bihar Goods and Services Tax Act dated 29.09.2023 for the assessment year 2017-18. On the very next day i.e., 30.09.2023, another show cause notice was issued for the very same assessment year which is produced as Annexure P3. Annexure P3 2/3 notice was dropped by Annexure P2 dated 29.12.2023. Later Annexure P4 order was issued on 09.03.2024. 3. Learned Counsel for the petitioner submits that since the matter was dropped, the petitioner was not aware and he did not participate in the assessment and hence he may be given an opportunity. Admittedly, Annexure P1 notice was issued and by inadvertence since another notice was issued for the very same year on the very next day (Annexure P3), the latter notice was dropped as per Annexure P2. There is no reason to find that the petitioner was not aware of Annexure P1 notice. In such circumstances, we are not inclined to grant a remand as sought for by the learned Counsel for the petitioner.
However, it has to be noticed that Section 107 provides for an appeal within three months. The petitioner had approached this Court with a writ petition which was filed on 15.05.2024 within the three month period as provided in Section
In such circumstances, we are of the opinion that the petitioner can be given an opportunity to file an appeal. The petitioner shall file an appeal within one month from the date on which the judgment in the writ petition is uploaded. The first appellate authority shall consider the same on merits without 3/3 looking at the delay since the same had occasioned only because the petitioner having challenged the assessment order in the writ petition.
The writ petition is allowed without any observation on the merits of the assessment.
Shiv/- (K. Vinod Chandran, CJ) (Partha Sarthy, J) AFR/NAFR CAV DATE N/A Uploading Date 30.07.2024. Transmission Date
Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.