Satguru Cattle Feeds and Chemoplast a Proprietorship Vs State of Bihar through The Principal Secretary (Patna High Court)
Patna High Court Quashes Tax Order The Patna High Court has quashed a tax assessment order against Satguru Cattle Feeds and Chemoplast, a proprietorship, for the financial year 2017-18. The petitioner challenged the order, arguing they were denied a personal hearing after filing their reply to a show-cause notice.
The court noted that under Section 75(4) of the Central Goods and Services Tax Act, 2017, and the Bihar Goods and Services Tax Act, 2017, an opportunity for a personal hearing must be granted if an adverse decision is contemplated against a taxpayer. The petitioner’s counsel argued that even without a specific request, the assessing officer was obligated to provide a hearing before passing an adverse order. The court agreed with this interpretation, stating that the officer must first consider the taxpayer’s response before scheduling a hearing.
The court referenced two judicial precedents: M/S. Agarwal Tube Company vs. UOI and Others (CWJC No. 14239 of 2024) and M/s Barhonia Engicon Private Limited vs. State of Bihar and others (CWJC No. 4180 of 2024). These cases supported the argument that a hearing is a statutory requirement under such circumstances.
