2022 (1) TMI 549 - HC - GST

Principles of natural Justice - No sufficient time was afforded to the petitioner - ex parte order - HELD THAT - This Court, notwithstanding the statutory remedy, is not precluded from interfering where, ex facie, we form an opinion that the order is bad in law. This is for two reasons- (a) violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case; (b) 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. Impugned order is set aside - petition allowed.

Issues:
1. Quashing of ex-parte order dated 08.02.2021 under Bihar Goods And Services Tax Rules, 2017.
2. Declaration of impugned order as cryptic, misconceived, and violative of natural justice principles.
3. Restraining coercive recovery during pendency of the writ application.
4. Interference by the Court despite statutory remedy.
5. Violation of natural justice principles and lack of reasons in the ex-parte order.
6. Disposal of the writ petition on mutually agreeable terms.
7. Deposit of ten percent of the demand amount by the petitioner.
8. De-freezing/de-attaching of the bank account(s) of the petitioner.
9. Appearance before the Assessing Authority.
10. Decision by the Assessing Authority on merits with principles of natural justice.
11. Affording opportunity of hearing and submission of essential documents.
12. No coercive steps during the case pendency.
13. Expeditious decision by the Assessing Authority.
14. Passing a speaking order with reasons.
15. Reservation of liberty to challenge the order.
16. Conducting proceedings through digital mode during the pandemic.
17. Disposal of the petition and interlocutory application(s).

Analysis:
The petitioner sought the quashing of an ex-parte order dated 08.02.2021 under the Bihar Goods And Services Tax Rules, 2017, and a declaration that the order was cryptic, misconceived, and violated natural justice principles. The Court noted that the order lacked sufficient reasons and violated natural justice principles by not providing the petitioner with a fair opportunity to be heard. Despite the statutory remedy, the Court decided to interfere due to the order's legal flaws. Consequently, the Court disposed of the writ petition by quashing the impugned order and setting aside the demand raised, emphasizing the importance of natural justice principles.

Regarding the disposal of the petition, the Court directed the petitioner to deposit ten percent of the demand amount within four weeks without prejudice to their rights. The Court also ordered the de-freezing/de-attaching of the petitioner's bank account(s) and required the petitioner to appear before the Assessing Authority. The Assessing Authority was instructed to decide the case on merits, affording all parties an opportunity to present essential documents and materials. Coercive steps were prohibited during the case pendency, and the Assessing Authority was tasked with expeditiously passing a speaking order with reasons.

The Court reserved liberty for the petitioner to challenge the order and for parties to seek other available remedies. It expressed hope for prompt handling of any future remedies. Notably, the Court did not express any opinion on the merits, leaving all issues open for further consideration. The Court also recommended conducting proceedings through digital mode during the pandemic. The petition was disposed of along with any interlocutory applications, with the respondents responsible for communicating the order electronically to the appropriate authority.

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