2021 (8) TMI 473 - HC - GST

Principles of natural justice - ex-parte order - compliance with the pre-deposit - HELD THAT - The order is found to be absolutely cryptic in nature, without assigning any reason, more so with regard to the imposition of penalty. As such, purely on a limited ground, the impugned order passed by respondent no.3, namely the Joint Commissioner of State Taxes, Patna South Patna West Circle, Patna as contained in Annexure-4, is set aside with further directions imposed. Petition disposed off.

Summary

Issues:
Petition for issuance of a writ of certiorari to quash an ex-parte order under Section 73 of Bihar Goods and Service Tax Act, 2017 without notice; Violation of principles of natural justice in passing the order; Imposition of penalty without reason; Relief sought for fresh order with opportunity of hearing.

Analysis:
The petitioner sought relief through a writ petition to quash an ex-parte order dated 20.08.2019 passed by the Joint Commissioner of State Taxes, determining a liability of &8377; 20,15,293.14 without serving any notice under Section 61 read with Rule 99 of the Bihar Goods and Service Tax Act, 2017. The petitioner also requested the court to direct the respondents to pass a fresh order after granting an opportunity for a hearing. The petitioner, represented by Mr. Satyabir Bharti, expressed readiness to deposit &8377; 5 lacs with the appropriate authority within two weeks. The court noted the violation of principles of natural justice in passing the order and the cryptic nature of the order, especially regarding the imposition of penalty.

The Hon'ble Chief Justice, in agreement with the petitioner's counsel, quashed and set aside the impugned order dated 20.08.2019. The court issued specific directions for further proceedings, including the deposit of &8377; 5 lacs by the petitioner, appearance before the authority on a specified date, provision for additional material if required, and a deadline for the authority to decide the matter on merits by 31st July, 2021. The court emphasized compliance with the principles of natural justice in the redetermination of the case and reserved liberty for parties to seek other legal remedies. The order was solely quashed on the ground of the violation of natural justice, with no expression of opinion on merits. Additionally, the court allowed digital mode proceedings during the pandemic and ensured prompt refund if the deposited amount exceeded the determined liability.

In conclusion, the court disposed of the petition in the mentioned terms, addressing the concerns raised by the petitioner regarding the ex-parte order, lack of notice, and the need for a fair hearing in compliance with natural justice principles. The judgment provided clear directions for the future course of action, ensuring a fair opportunity for the petitioner to present their case and have it adjudicated upon with due process.