2021 (7) TMI 1033 - HC - GST

Maintainability of petition - sufficient time was not afforded to the petitioner to represent his case - ex-parte order - principles of natural justice - HELD THAT - This Court, notwithstanding the statutory remedy, is not precluded from interfering where, ex facie, it is opined that the order is bad in law. Here is violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case - also the order passed ex parte in nature, does not assign any sufficient reasons even decipherable from the record, as to how the officer could determine the amount due and payable by the assessee. The order, ex parte in nature, passed in violation of the principles of natural justice, entails civil consequences. Petition disposed off.

Issues Involved:
1. Quashing of orders passed by the Joint Commissioner of State Tax
2. Violation of principles of natural justice in the orders
3. Ex parte nature of the orders
4. Request for remand to the Assessing Authority
5. Direction to not take coercive steps during pendency
6. Conditions for hearing the appeal and deposit requirements
7. Defreezing/de-attaching of bank accounts
8. Directions for future proceedings before the Assessing Officer
9. Liberty to challenge the order and take other remedies
10. Conducting proceedings through digital mode during the pandemic

Analysis:

1. The petitioner sought the quashing of various orders related to tax liabilities imposed by the Joint Commissioner of State Tax. The High Court noted that the orders were ex parte in nature and lacked sufficient reasoning. The Court found that the orders violated principles of natural justice by not providing the petitioner with a fair opportunity to present their case. Consequently, the Court quashed the impugned orders dated 18th March 2021 and 30th January 2021 passed by the Additional Commissioner (Appeal) and Joint Commissioner of State Tax, respectively.

2. The Court emphasized the importance of affording parties a fair hearing and adequate time to represent their case. It highlighted that the lack of proper reasoning in ex parte orders can have significant civil consequences. The Court's decision to intervene was based on these grounds, ensuring that the petitioner's rights were protected and due process was followed.

3. In response to the request for remand to the Assessing Authority, the Court decided to set aside the impugned orders and directed the petitioner to deposit a certain percentage of the demanded amount within a specified timeframe. The Court also instructed the petitioner to cooperate in the proceedings before the Assessing Officer and not unnecessarily delay the process.

4. To address the issue of coercive steps during the case's pendency, the Court directed that the petitioner's bank accounts be defreezed or de-attached immediately. This step aimed to alleviate any undue financial burden on the petitioner while the matter was being resolved.

5. The Court provided detailed directions for future proceedings, including the appearance of the petitioner before the Assessing Officer, the submission of essential documents, and the expeditious resolution of the matter. The Court reserved the petitioner's right to challenge the order and advised both parties to utilize available legal remedies as necessary.

6. Given the challenges posed by the COVID-19 pandemic, the Court recommended conducting proceedings through digital modes to ensure continuity and efficiency. Overall, the judgment focused on upholding principles of natural justice, providing fair opportunities for representation, and facilitating a just resolution of the tax dispute.

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