Case Law Details
Vaishno Traders (Proprietor Manish Kumar Mittal) Vs State of Bihar (Patna High Court)
Introduction: The legal battle between Vaishno Traders and the State of Bihar, as represented by the Joint Commissioner of State Tax, unfolds in the Patna High Court. The petitioner contests assessment orders dated 12.10.2019, challenging the validity and procedural fairness under the Bihar Goods and Services Tax Act, 2017 (BGST Act) and Central Goods and Services Tax Act (CGST Act).
Detailed Analysis: The petitioner’s counsel argues that the Central Tax Authority canceled Vaishno Traders’ registration, and subsequent assessment orders were issued without providing crucial details mentioned in the inspection report by the Central Investigation Bureau of State Taxes. Allegations of fraudulent registration without proper evidence and a lack of adherence to principles of natural justice become focal points.
On the contrary, the Government Advocate contends that the petitioner has alternative remedies under the BGST Act and questions the invocation of Article 226 of the Constitution. The assessment orders are supported by a detailed inspection report, including findings of fake receipts and payments in iron scrap transactions. The government’s stance is that the writ petition is an abuse of court process.
The court scrutinizes the cancellation of registration, highlighting discrepancies in the show cause notice and the subsequent order. It emphasizes the importance of natural justice and criticizes the mechanical issuance of cancellation notices without legal basis. The assessment orders for the period June 2018 to January 2019 are discussed, pointing out identical notices under Section 74 of the BGST Act and their questionable basis.
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