Patna High Court Quashes Order And notice for Violating Principles Of Natural Justice

Patna High Court Quashes Order And notice for Violating Principles Of Natural Justice

The Court opined that the order was bad in law as sufficient time was not afforded to the Petitioner to represent his case which violated the principles of natural justice

The Patna High Court quashed the order and notice issued u/S 74 of the Bihar Goods and Services Tax Act, 2017 (BGST Act) on the ground that it violated principles of natural justice and that it was ex parte in nature.

The matter, titled Rambabu Singh v State of Bihar And Ors, was placed before a Division Bench of the High Court of Patna comprising Chief Justice Sanjay Karol and Justice S. Kumar.

The reliefs claimed in the petition by the Petitioner – Assessee involved quashing of an order passed pursuant to the notice issued by the Respondent – Authorities quantifying tax, interest and penalty amounting to ₹9,39,808 u/S 74 of the Bihar Goods and Services Tax Act, 2017 (BGST Act) for the period April 2019 to September 2019 in Form GST DRC-07. The Petitioner – Assessee further prayed for setting aside the order of the Respondent – Authorities dismissing the Petitioner's appeal against the said order and notice.

The Court noted that the Petitioner's appeal against the said order was dismissed merely on the grounds of being barred by limitation. However, the Court opined that the delay was sufficiently explained on account of Covid-19 restrictions.

The Respondent – Authorities stated that they had no objection if the matter was remanded to the Assessing Authority for deciding the case afresh.

The Court, after considering the submissions of the parties, opined that the order was bad in law as no sufficient time was afforded to the Petitioner to represent his case which violated the principles of natural justice. It further observed that the order was ex parte in nature and it did not assign any sufficient reasons even decipherable from the record to determine the amount, which again violated the principles of natural justice and entailed civil consequences.

Therefore, the Court quashed the order and notice issued u/S 74 of the BGST Act for the tax period April 2019-September 2019 in Form GST DRC-07.