M/s Greentech Auto LLP Vs The State of Bihar — Patna HC (2024) — LawSathi Research

M/s Greentech Auto LLP Vs The State of Bihar — Patna HC (2024) — LawSathi Research

What the court decided

AI extract

Outcome

Rectification order dated 19.01.2024 (Annexure-5) set aside for violation of principles of natural justice; petitioner directed to appear before the Assessing Officer on 23.08.2024 with Annexure-5 treated as a show-cause notice; written objections to be filed on that date, hearing date to be personally intimated with acknowledgment, and fresh orders to be passed expeditiously.

Issue for consideration

Whether the rectification order dated 19.01.2024 (Annexure-5) was liable to be set aside as having been passed in violation of the principles of natural justice, without notice or opportunity of hearing to the petitioner.

Court's answer

Neither of the orders dated 18.01.2024 and 19.01.2024 makes any reference to a notice issued to the assessee; they speak only of details having been collected from the assessee, and the counter affidavit does not state that an opportunity of hearing was provided.

Ratio / Principle

On the ground of violation of the principles of natural justice, the rectification order challenged in the writ petition is set aside, and the petitioner is directed to appear before the Assessing Officer on 23.08.2024, treating Annexure-5 as a show-cause notice issued.

Key takeaways

Written objections, if any, are to be filed on 23.08.2024; the Assessing Officer shall personally intimate the date of hearing with acknowledgment taken from the assessee or his authorised representative, conduct the hearing and pass orders expeditiously.ratio¶23

Detailed headnote1 paragraphs

Patna High Court (CWJC No.5801 of 2024, decided 06-08-2024; oral judgment by K. Vinod Chandran, CJ, with Partha Sarthy, J): The petitioner challenged a rectification order dated 19.01.2024 (Annexure-5) by which its input tax claim was reversed and a demand raised, contending it was issued without any notice of hearing. The Court examined the orders dated 18.01.2024 and 19.01.2024 and found they spoke only of details collected from the assessee, with no reference to any notice issued; the counter affidavit, though filed, did not state that an opportunity of personal hearing was afforded. Holding that the principles of natural justice were violated, the Court set aside the rectification order, treated Annexure-5 as a show-cause notice, and directed the petitioner to appear before the Assessing Officer on 23.08.2024, file written objections, and receive personal intimation of the hearing date with acknowledgment taken, the Assessing Officer to conduct the hearing and pass orders expeditiously. Writ petition disposed of.

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.5801 of 2024

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M/s Greentech Auto LLP incorporated under the Limited Liability Partnership Act, 2008 having its office at Shop 3 and 4 Basement Arpan Complex Opp St. Michel School Digha Patna Bihar- 800011 through its Partner Mukesh Kumar Tiwari, MALE, Aged about 45 Years, S/o Manbodh Tiwary, Resident of - 16C, Seal Lane, Near Tangra Mini Bus Stand Tangra, District- Kolkata, West Bengal- 700015.

... ... Petitioner/s

Versus

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

The Additional Commissioner, State Tax Patna West Circle, Patna.

The Joint Commissioner of Commercial State Taxes, Danapur, Circle 1, Patna West, Bihar.

... ... Respondent/s

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Appearance :

For the Petitioner/s For the Respondent/s

: Mr. Deepak Kumar, Advocate : Mr. Vivek Prasad, GP-7

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CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE PARTHA SARTHY ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 06-08-2024

The petitioner is aggrieved with the rectification order dated 19.01.2024 produced in Annexure-5, which according to the petitioner was issued without any notice of hearing.

The learned Government Advocate on the other hand submits that the petitioner had claimed the input tax wrongly and on finding the same, it was reversed, thus raising a demand which as against the refund order earlier would have to be satisfied.

Patna High Court CWJC No.5801 of 2024 dt.06-08-2024 2/3

We see that the petitioner had in the writ petition taken a specific contention that no hearing was granted to the petitioner prior to the passing of the rectification order. We have looked at the orders passed on 18.01.2024 and 19.01.2024, which only speak of details having been collected from the assessee. There is no reference to a notice issued to the assessee in either of these orders; the first of which was rectified again by the second order dated 19.01.2024, wherein the tax demand was reduced considerably.

A counter affidavit has been filed wherein though the contention regarding violation of principles of natural justice for not affording an opportunity of personal hearing was specifically mentioned, nothing is stated as to whether an opportunity was provided to the petitioner.

Hence, on the ground of violation of principles of natural justice, we set aside the rectification order challenged in the above writ petition and direct the petitioner to appear before the Assessing Officer on 23.08.2024, treating Annexure-5 as a show-cause notice issued.

Written objections, if any, shall be filed as on 23.08.2024. The Assessing Officer shall personally intimate the date of hearing on 23.08.2024 with acknowledgment taken, to

Patna High Court CWJC No.5801 of 2024 dt.06-08-2024 3/3

the assessee or his authorised representative who appears before

the Authority and conduct hearing and pass orders expeditiously.

The writ petition stands disposed of.

(K. Vinod Chandran, CJ)

(Partha Sarthy, J)

avinash/-

AFR/NAFR
CAV DATE	N/A
Uploading Date	07.08.2024
Transmission Date	N/A