Jai Bajrang Krishi Vikash Kendra vs. The State Of Bihar

Facts

The petitioner, Jai Bajrang Krishi Vikash Kendra, filed a writ petition challenging an order dated August 29, 2022, passed by the Additional Commissioner of State Taxes (Appeal), Patna. This order rejected the petitioner's appeal against an order dated March 9, 2020, passed by the Assistant Commissioner of State Taxes. The initial order and a summary of order in Form GST DRC-07 were also challenged. The petitioner contended that both orders were ex parte and passed in violation of principles of natural justice, as they were not afforded a fair opportunity of hearing and the orders lacked sufficient reasoning. The Revenue stated it had no objection if the matter was remanded for fresh decision on merits, without limitation being an impediment, and no coercive steps would be taken.

Held

The Court held that the impugned order dated August 29, 2022, and the prior order dated March 9, 2020, were bad in law. The primary reasons for this decision were the violation of the principles of natural justice, specifically the lack of a fair opportunity of hearing afforded to the petitioner, and the ex parte nature of the orders which lacked sufficient reasoning for determining the amount due. The Court found that the authorities had not adjudicated the matter on the attending facts and circumstances. Consequently, the Court quashed and set aside both the appellate order and the original orders. The Court directed the Assessing Authority to decide the case afresh on merits, after complying with the principles of natural justice, affording adequate opportunity to all parties, and passing a speaking order with reasons. The petitioner was directed to deposit 10% of the total demand, in addition to any amount already deposited, within four weeks, without prejudice to their rights. The bank accounts of the petitioner were to be de-frozen immediately. The Assessing Authority was to decide the case expeditiously, preferably within two months from the petitioner's appearance, and 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 impugned order dated August 29, 2022, passed by the Additional Commissioner of State Taxes (Appeal) is bad in law due to violation of principles of natural justice, specifically the right to a fair opportunity of hearing, as argued by the petitioner. The petitioner contended that no sufficient time was given to represent their case and the order was passed ex parte without adequate reasons. 2. Whether the ex parte order passed by the Assistant Commissioner of State Taxes dated March 9, 2020, and the summary of order in Form GST DRC-07 are legally sustainable, given the petitioner's claim of lack of sufficient reasoning and adjudication on attending facts and circumstances. The petitioner argued that all factual and legal issues should have been addressed, even in ex parte proceedings. The Revenue did not contest these points and agreed to a remand for fresh adjudication on merits.