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2022 (12) TMI 554 - HC - GSTMaintainability of petition - availability of alternate remedy - demand on the basis of excess TDS Credit in GSTR 2A of the petitioner s employer namely IGIMS against the payment made to the petitioner in the period October 2019 to March 2019 - Section 73(9) of BGST Act - HELD THAT - Having heard learned counsel for the parties as also perused the record made available, we are of the considered view 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. Violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case - 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:
Petition to set aside ex parte order imposing additional tax based on excess TDS credit, violation of natural justice, demand notice issued without hearing, quashing of order and demand notice, deposit of 20% of demand amount, de-freezing of bank accounts, appearance before Assessing Authority, decision on merits with natural justice, no coercive steps during case pendency, expeditious decision within two months, speaking order with reasons, liberty to challenge order, proceedings in digital mode. Analysis: The petitioner sought relief against an ex parte order dated 09.01.2021 passed by the Joint Commissioner of State Tax, North Circle, Patna, imposing an additional tax of Rs. 97,02,298 based on excess TDS credit in GSTR 2A. The order was challenged for lack of opportunity to be heard and violation of natural justice principles. The High Court noted the absence of sufficient time for the petitioner to present their case and the order's failure to provide reasons for determining the amount due, emphasizing the civil consequences of an ex parte order issued in violation of natural justice. The Revenue's counsel agreed to a remand for a fresh decision by the Assessing Authority, ensuring no coercive steps during the case and a merit-based decision. Despite statutory remedies, the Court intervened due to glaring issues - lack of fair hearing, absence of reasons in the ex parte order, and failure to consider all facts. Consequently, the Court disposed of the petition by quashing the impugned order and demand notice, subject to the petitioner depositing 20% of the demand amount within eight weeks. The Court directed the de-freezing of bank accounts, the petitioner's appearance before the Assessing Authority, and a merit-based decision ensuring natural justice principles. It prohibited coercive actions during the case, mandated expeditious resolution within two months, and required a speaking order with reasons. The petitioner was to cooperate, and the Assessing Authority was tasked with a prompt decision, leaving all issues open for further challenge or remedies as per law. The Court emphasized conducting proceedings through digital mode if possible, ensuring efficient handling of the case. The judgment concluded by leaving all issues open for future challenges, stressing the importance of adherence to legal procedures and principles of natural justice in tax matters.
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