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Case Summary: Shiv Gopal Traders vs. The State of
Bihar & Ors.
Case No.: Civil Writ Jurisdiction Case No. 9000 of 2022
Court Name: High Court of Judicature at Patna
Date of Order: 14.07.2022
Case Summary: The petitioner, Shiv Gopal Traders,
challenged an ex parte order passed by the Additional Commissioner of State
Taxes (Appeals), Bhagalpur Division, which rejected the petitioner’s appeal
against an earlier order from the Assistant Commissioner of State Taxes, Munger
Circle, under Section 74 of the CGST Act, 2017. The appeal was dismissed on the
grounds of being barred by limitation. The petitioner sought relief from the
High Court, arguing that the order violated the principles of natural justice.
Facts of the Case:
·
The petitioner, Shiv
Gopal Traders, was subjected to a penalty order under Section 74 of the CGST
Act for the period from April 2019 to September 2019.
·
The Additional
Commissioner rejected the petitioner’s appeal ex parte due to the expiration of
the limitation period.
·
The petitioner claimed
that the order was passed without affording them sufficient opportunity to
present their case and argued that it violated the principles of natural
justice.
Submissions By Petitioner's:
·
The petitioner
contended that the ex parte order was unjust as it did not provide sufficient
time for them to respond. They argued that the order was passed in violation of
natural justice, and no adequate reasoning was provided in the decision.
Respondent's Submission:
·
The respondents did
not object to the case being remanded to the Assessing Authority for a fresh
decision. They agreed that the limitation period should not hinder the case and
that it should be decided on its merits.
Findings and Decision:
The court found that the order passed by the
Additional Commissioner was ex parte and violated the principles of natural
justice. The court noted that the petitioner was not given a fair opportunity
to be heard, and the order lacked sufficient reasoning.
Conclusion: The High Court quashed the impugned order dated 14.03.2021 by
the Additional Commissioner and the earlier order dated 18.03.2020 by the
Assistant Commissioner. The case was rema.nded to the Assessing Authority for a
fresh decision. The court also ordered the de-freezing of the petitioner’s bank
accounts and provided directions to ensure the case is decided on its merits
with due consideration of the principles of natural justice.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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