M/S Singh Traders vs. The State Of Bihar

CWJC/18648/2024HC PatnaGSTCNR BRHC01116597202409 January 2025Bench: MR. JUSTICE PARTHA SARTHY,THE CHIEF JUSTICE-2 pages

AI SummaryRemanded

Facts

The petitioner, M/s Singh Traders, a proprietorship firm, filed a writ petition before the Patna High Court. The petition challenged assessment orders dated September 30, 2023, and November 27, 2023, passed by the Deputy Commissioner of State Tax. The petitioner contended that these orders were issued without affording a personal hearing, violating Section 75(4) of the GST enactments. The State of Bihar and the Union of India were the respondents. The judgment refers to a previous decision in C.W.J.C. No. 4180 of 2024 and analogous cases, M/s Barhonia Engicon Private Limited v. The State of Bihar and Ors., dated November 27, 2024, which addressed similar contentions on limitation raised by the petitioner.

Held

The Court held that the assessment orders dated September 30, 2023, and November 27, 2023, were liable to be set aside due to a violation of the statutory mandate for a personal hearing under Section 75(4) of the GST enactments. The Court reasoned that the absence of a personal hearing before passing the orders rendered them invalid. Consequently, the impugned orders were set aside. The matter was remitted back to the Assessing Officer. The petitioner was directed to appear before the Assessing Officer on January 27, 2025. If the petitioner appeared on the notified date or an adjourned date, the Assessing Officer was directed to pass fresh orders within three months from the date of the judgment or within the remaining limitation period, whichever is later, after hearing the assessee. The writ petition was disposed of with these directions.

Key Issues

1. Whether the assessment orders dated 30.09.2023 and 27.11.2023 are liable to be set aside for non-compliance with the mandatory requirement of a personal hearing under Section 75(4) of the GST enactments? Petitioner's Argument: The petitioner argued that the impugned assessment orders were passed without granting a personal hearing, which is a statutory mandate under Section 75(4) of the GST enactments. This procedural lapse vitiates the orders. Revenue's Argument: The judgment does not record any specific argument from the revenue's side regarding the personal hearing issue. However, it notes that contentions raised by the petitioner on limitation were answered against the petitioner in a previous judgment.

Sections Cited

Section 75(4)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.18648 of 2024 ====================================================== M/S Singh Traders a Proprietorship Firm concern having its office at Sakaddi, Sakaddi, Koilwar, Bhojpur, Bihar-802160 through its Proprietor Ajay Kumar Singh Gender-Male, aged about 53 years, son of Birendra Singh, Resident of Village-Sakaddi, P.S.-Koilwar, District-Bhojpur, Bihar-802160. ... ... Petitioner/s Versus 1. The State of Bihar through The Principal Secretary, State Tax, Bihar, Patna having its office at Vikas Bhawan, Patna. 2. The Principal Secretary cum Commissioner, Department of State Taxes, Government of Bihar, Patna. 3. The Deputy Commissioner of State Tax, Shahabad, Patna West, Bihar. 4. The Union of India through the Under Secretary, Finance Department, Govt. of India, New Delhi. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Rudra Pratap Singh, Advocate Mr. Akshansh Ankit, Advocate For the Respondent/s : Mr. Government Pleader (7) ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE PARTHA SARTHY

ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 09-01-2025

The contentions raised in the present writ petition on limitation are answered in C.W.J.C. No. 4180 of 2024 and analogous cases, M/s Barhonia Engicon Private Limited v. The State of Bihar and Ors. vide judgment dated 27.11.2024, against the petitioner.

It is submitted on behalf of the petitioner that the assessment order impugned has been passed without granting a Patna High Court CWJC No.18648 of 2024 dt.09-01-2025 2/2 personal hearing under Section 75(4) of the GST enactments, in which circumstance, the impugned orders dated 30.09.2023 (Annexure-P/1) and 27.11.2023 (Annexure-P/2 series) are set aside on violation of the statutory mandate for notice of personal hearing and the matter is remitted to the Assessing Officer directing the assessee to appear before the Assessing Officer on 27.01.2025. If he appears on the date notified, or on a date once adjourned, the Assessing Officer after hearing the assessee shall pass orders within three months from the date of this judgment or within the limitation period provided, if not expired, whichever falls later.

The writ petition stands disposed of with the above directions.

Shiv/- (K. Vinod Chandran, CJ) (Partha Sarthy, J) AFR/NAFR CAV DATE Uploading Date 10.01.2025 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.