2022 (8) TMI 215 - HC - GST

Maintainability of petition - availability of alternative reedy of appeal - Violation of principles of natural justice - fair opportunity of hearing not provided - ex-parte order passed - 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; (c) It is also found the authorities not to have adjudicated the matter on the attending facts and circumstances. All issues of fact and law ought to have been dealt with, even if the proceedings were ex parte in nature. Petition disposed off.

Issues:
1. Quashing of order of Appeal due to delay
2. Quashing of Assessment order for violation of Natural Justice
3. Direction not to realize amount from bank account
4. Interference by the Court based on violation of principles of natural justice
5. Disposal of the writ petition

Quashing of Order of Appeal due to Delay:
The petitioner sought relief to quash the order of Appeal passed by the Additional Commissioner of State Tax, which dismissed the petitioner's appeal on the ground of delay. The Court noted that the Revenue had no objection to remanding the matter to the Assessing Authority for a fresh decision without the limitation coming into play. The Court observed that the order was bad in law as it violated the principles of natural justice by not providing sufficient time for the petitioner to present their case. The order was passed ex parte without assigning clear reasons, and the authorities failed to adjudicate the matter properly.

Quashing of Assessment Order for Violation of Natural Justice:
The petitioner also sought to quash the Assessment order passed by the Deputy Commissioner of State Tax, alleging violation of the principle of natural justice. The Court found that the order was ex parte and lacked sufficient reasoning, leading to civil consequences. The Court held that all issues of fact and law should have been addressed, even in ex parte proceedings. Consequently, the Court quashed both the Appeal and Assessment orders.

Direction not to Realize Amount from Bank Account:
The petitioner requested a direction to prevent the authorities from realizing the amount from a seized bank account. The Court directed the de-freezing/de-attaching of the bank account(s) of the petitioner immediately, subject to the proceedings of the present petition.

Interference by the Court based on Violation of Principles of Natural Justice:
The Court, despite the statutory remedy, decided to interfere due to the violation of natural justice principles. The Court disposed of the writ petition by setting aside the impugned orders, requiring the petitioner to deposit a certain amount and cooperate in the proceedings. The Assessing Authority was directed to decide the case on merits, affording all parties a fair hearing and passing a speaking order with reasons.

Disposal of the Writ Petition:
The Court disposed of the writ petition with various directions, including the appearance of the petitioner before the Assessing Authority, no coercive steps during the case, expeditious decision-making, and reserving liberty for challenging the order. The Court emphasized conducting proceedings through digital mode during the pandemic and left all issues open for further legal recourse.

This judgment highlights the importance of adherence to principles of natural justice in tax matters and the Court's authority to intervene when such principles are violated, ensuring a fair and just decision-making process.

← Previous Next →