M/S Ghar Ghar Ki Awaz vs. The State Of Bihar

Facts

The petitioner, M/s Ghar Ghar Ki Awaz, through its proprietor Mohammad Naushad, filed a writ petition before the Patna High Court challenging an ex parte order dated 08.12.2021 passed by the Assistant Commissioner of State Tax, North Circle, Patna. The order, along with a Summary of Order in Form GST DRC-07, was challenged for being passed without sufficient opportunity for the petitioner to present their case. The revenue, represented by the State of Bihar, had no objection to the matter being remanded for fresh adjudication. The Court noted that the order was ex parte and lacked sufficient reasoning for the determined amount due. The Court also observed a violation of the principles of natural justice, specifically the lack of a fair opportunity of hearing, and that the authorities had not adjudicated on the attending facts and circumstances.

Held

The Court held that the impugned order dated 08.12.2021, passed by the Assistant Commissioner of State Tax, North Circle, Patna, and the Summary of Order in Form GST DRC-07, were bad in law. The Court found that the order was passed ex parte in violation of the principles of natural justice, as the petitioner was not afforded a fair opportunity of hearing and sufficient time to represent their case. Furthermore, the order lacked sufficient reasoning to decipher how the officer determined the amount due and payable by the assessee. The Court also noted that the authorities had not adjudicated the matter on the attending facts and circumstances, failing to deal with all issues of fact and law. Consequently, the Court quashed and set aside the impugned order. The Court directed the petitioner to deposit twenty percent of the demand within four weeks, without prejudice to the rights of the parties. The bank accounts of the petitioner were ordered to be de-frozen. The petitioner was directed to appear before the Assessing Authority on 02.01.2023, and the Assessing Authority was directed to decide the case on merits after complying with the principles of natural justice, affording opportunity to all parties, and passing a speaking order within two months. No coercive steps were to be taken against the petitioner during this period. The Court explicitly stated that it had not expressed any opinion on merits and all issues were left open.

Key Issues

1. Whether the ex parte order dated 08.12.2021 passed by the Assistant Commissioner of State Tax, North Circle, Patna, and the Summary of Order in Form GST DRC-07, are bad in law due to violation of principles of natural justice, specifically the lack of a fair opportunity of hearing afforded to the petitioner? 2. Whether the ex parte order is unsustainable for not assigning sufficient reasons for determining the amount due and payable by the assessee, and for failing to adjudicate on the attending facts and circumstances? Petitioner's Arguments: The petitioner argued that the order was ex parte and passed without providing sufficient time or opportunity to represent their case, thus violating the principles of natural justice. They contended that the order lacked adequate reasoning for the demand raised. Revenue's Arguments: The learned counsel for the Revenue stated they had no objection if the matter was remanded to the Assessing Authority for deciding the case afresh on merits, and that no coercive steps would be taken against the petitioner during the pendency of the case.