Rajendra Engineering Company vs. Deputy Commissioner, State Tax Bowbazar Charge And Ors
Held
The Court held that the respondents concerned were obligated to consider and dispose of the petitioner's objection dated April 19, 2021. The Court directed the respondents to pass a reasoned and speaking order after providing the petitioner an opportunity of hearing. This decision was to be made within two weeks of the order's communication, with the decision communicated to the petitioner within one week thereafter. The Court explicitly stated that it had not delved into the merits of the objection itself, emphasizing that the respondents must act strictly in accordance with the law. Furthermore, the Court ordered that no coercive action for recovery of the demand in question should be taken until the objection was disposed of. The ratio decidendi is that statutory authorities must act diligently and dispose of objections filed by taxpayers within a reasonable time, affording them a proper hearing.
Facts
The petitioner, Rajendra Engineering Company, filed a writ petition before the High Court challenging the inaction of the respondents in considering their objection dated April 19, 2021. This objection was filed in response to a show-cause notice issued under Section 74 of the State GST Act, 2017. The petitioner contended that their objection had been sitting with the concerned respondents without any action. The State GST authorities are the respondents. The specific tax period and the amount in dispute are not explicitly stated in the judgment. The procedural history involves the issuance of a show-cause notice and the petitioner's subsequent filing of an objection.
Key Issues
1. Whether the respondents have acted in accordance with law by failing to consider and dispose of the petitioner's objection dated April 19, 2021, filed in response to a show-cause notice under Section 74 of the State GST Act, 2017? The petitioner argued that the respondents were in a state of inaction and had been 'sitting over' their objection, which was filed in response to a show-cause notice under Section 74 of the State GST Act, 2017. The petitioner sought a direction for the disposal of their objection. The State, represented by the Deputy Commissioner, State Tax, Bowbazar Charge & Ors., did not present any arguments against the petitioner's plea for disposal of the objection. The judgment records no specific arguments from the State's side regarding the merits of the objection itself.
Sections Cited
Section 74
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S/L 18 23.08.2021 Bowbazar Charge & Ors. (Through Video Conference) Mr. Debanuj Basu Thakur …. For the Petitioner Mr. A. Ray, Ld. G.P. Md. T. M. Siddiqui Mr. N. Chatterjee …. For the State Heard both the parties. Petitioner being aggrieved by inaction and sitting over the objection of the petitioner filed on 19th April, 2021 as it appears at Annexure P-5 of the writ petition before the respondents concerned against show-cause notice under Section 74 of the State GST Act, 2017, has filed this writ petition. Considering the submission of the parties, this writ petition is disposed of by directing the respondents concerned to consider and dispose of the aforesaid objection in accordance with law and by passing a reasoned and speaking order and after giving opportunity of hearing to the petitioner or his authorized representative within two weeks from the date of communication of this order and to communicate his decision to the petitioner within one week thereafter.
2 It is recorded th
The judgment continues below.
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