Quashed

M/s Amba Tirupati Zetetic Engineering Private Limited v. The Union of India

Patna HC9 Jul 2021CWJC/9837/2021

Case brief

AI extract

What is this about?

The Patna High Court quashed impugned Central and State Tax orders passed ex parte without assigning reasons or affording a fair hearing. The Court remanded the matter to the Assessing Authority on merits, directed release of frozen bank accounts, and set timelines for deposit and fresh proceedings, reserving opinions on merits.

What did the court decide?

Impugned orders quashed; case remanded to Assessing Authority to decide on merits; bank accounts de-frozen; order to be decided within two months after deposit of additional security.

M/s Amba Tirupati Zetetic Engineering Private Limited… — Writ and Judicial Review | Patna HC (2021)

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IN THE HIGH COURT OF JUDICATURE AT PATNA

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Civil Writ Jurisdiction Case No.9837 of 2021

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M/s Amba Tirupati Zetetic Engineering Private Limited having its place of business at Flat No. 401, 4th Floor, Pawan Pradeep Apartment, Khetan Gali, West Boring Canal Road, Patna through one of its directors namely Amrita Jha female aged about 52 years wife of Late Anil Jha resident of Flat No. 401, 4th Floor, Pawan Pradeep Apartment, Khetan Gali, West Boring Canal Road.

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... ... Petitioner/s

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Versus

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The Union of India through the Secretary, Ministry of Finance, Government of India at New Delhi.

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The Principal Chief Commissioner of Central GST and CX, Central Revenue Building, Birchand Patel Path, Patna.

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The State of Bihar through the Principal Secretary cum Commissioner, Department of State Taxes, Government of Bihar, Patna.

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The Assistant Commissioner of State Taxes, Patliputra Circle, Patna. (March-2019)

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The Additional Commissioner of State Taxes (Appeals), Patna Central Division, Patna.

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... ... Respondent/s

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Patna High Court CWJC No.9837 of 2021 dt.09-07-2021 2/11

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Appearance : For the Petitioner/s : Mr.Gautam Kumar Kejriwal For the Respondent/s : Mr.Dr. K.N. Singh (ASG) ======================================================

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CORAM: HONOURABLE THE CHIEF JUSTICE

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and

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HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT

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(Per: HONOURABLE THE CHIEF JUSTICE)

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(The proceedings of the Court are being conducted by Hon’ble the Chief Justice/ Hon’ble Judges through Video Conferencing from their residential ofÏces/residences. Also, the Advocates and the Staffs joined the proceedings through Video Conferencing from their residences/ofÏces.)

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Date : 09-07-2021

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petitioner has prayed for the following relief(s):

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Patna High Court CWJC No.9837 of 2021 dt.09-07-2021 3/11

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Patna High Court CWJC No.9837 of 2021 dt.09-07-2021 4/11

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Patna High Court CWJC No.9837 of 2021 dt.09-07-2021 5/11

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Patna High Court CWJC No.9837 of 2021 dt.09-07-2021 6/11

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It is brought to our notice that vide impugned order dated 05.02.2021 (Annexure-6), passed by respondent no.5, the Additional Commissioner of State Taxes (Appeals), Patna Central Division, Patna in Appeal Case No. AD100221000608Z, the appeal of the petitioner against the order dated the order dated 13.03.2020, (Annexure-4) passed by the Respondent No. 4 namely the Assistant Commissioner of State Taxes, Patliptra Circle, Patna in Reference No. ZA100320016492F has been rejected merely on the grounds of being barred by limitation.

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In our considered view, the delay stands sufficiently explained on account of COVID restrictions.

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Learned counsel for the Revenue, states that he has no objection if the matter is remanded to the Assessing Authority for deciding the case afresh. Also, the case shall be decided on merits. Also, during pendency of the case, no coercive steps shall be taken against the petitioner.

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Statement accepted and taken on record.

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Patna High Court CWJC No.9837 of 2021 dt.09-07-2021 7/11

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However, 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. This we say so, 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. As such, on this short ground alone, we dispose of the present writ petition in the following mutually agreeable terms:

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(a) We quash and set aside the impugned order dated 05.02.2021 (Annexure-6), passed by respondent no.5, the Additional Commissioner of State Taxes (Appeals), Patna Central Division, Patna in Appeal Case No. AD100221000608Z, as also the order dated the order dated 13.03.2020, (Annexure-4) passed by the

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Patna High Court CWJC No.9837 of 2021 dt.09-07-2021 8/11

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Respondent No. 4 namely the Assistant Commissioner of State Taxes, Patliptra Circle, Patna in Reference No. ZA100320016492F;

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(b) We accept the statement of the petitioner that ten per cent of the total amount, being condition prerequisite for hearing of the appeal, already stands deposited. If that were so, well and good. However, if the amount is not deposited for whatever reason(s), same shall be done before the next date;

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(c) Further the petitioner undertakes to additionally deposit ten per cent of the amount of the demand raised before the Assessing Officer. This shall be done within four weeks.

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(d) This deposit shall be without prejudice to the respective rights and contention of the parties and subject to the order passed by the Assessing Officer. However, if it is ultimately found that the petitioner’s deposit is in excess, the same shall be refunded within two months from the date of passing of the order;

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(e) We also direct for de-freezing/de-attaching of the bank account(s) of the writ-petitioner, if attached in

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Patna High Court CWJC No.9837 of 2021 dt.09-07-2021 9/11

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reference to the proceedings, subject matter of present petition. This shall be done immediately.

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(f) Petitioner undertakes to appear before the Assessing Authority on 17^th of August, 2021 at 10:30 A.M., if possible through digital mode;

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(g) The Assessing Authority shall decide the case on merits after complying with the principles of natural justice;

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(h) Opportunity of hearing shall be afforded to the parties to place on record all essential documents and materials, if so required and desired;

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(i) During pendency of the case, no coercive steps shall be taken against the petitioner.

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(j) The Assessing Authority shall pass a fresh order only after affording adequate opportunity to all concerned, including the writ petitioner;

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(k) Petitioner through learned counsel undertakes to fully cooperate in such proceedings and not take unnecessary adjournment;

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(l) The Assessing Authority shall decide the case on merits expeditiously, preferably within a period of two

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Patna High Court CWJC No.9837 of 2021 dt.09-07-2021 10/11

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months from the date of appearance of the petitioner;

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(m) The Assessing Authority shall pass a speaking order assigning reasons, copy whereof shall be supplied to the parties;

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(n) Liberty reserved to the petitioner to challenge the order, if required and desired;

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(o) Equally, liberty reserved to the parties to take recourse to such other remedies as are otherwise available in accordance with law;

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(p) We are hopeful that as and when petitioner takes recourse to such remedies, before the appropriate forum, the same shall be dealt with, in accordance with law, with a reasonable dispatch;

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(q) We have not expressed any opinion on merits and all issues are left open;

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(r) If possible, proceedings during the time of current Pandemic [Covid-19] be conducted through digital mode;

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The instant petition sands disposed of in the aforesaid terms.

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Interlocutory Application(s), if any, also stands disposed of.

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Patna High Court CWJC No.9837 of 2021 dt.09-07-2021 11/11

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Learned counsel for the respondents undertakes

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to communicate the order to the appropriate authority

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through electronic mode.

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(Sanjay Karol, CJ)

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( S. Kumar, J)

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PKP/Amrendra/-

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M/s Amba Tirupati Zetetic Engineering Private Limited v. The Union of India

Case brief

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M/s Amba Tirupati Zetetic Engineering Private Limited v. The Union of India

Case brief

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