Balram Singh Vs Union of India (Patna High Court)
The Hon’ble Patna High Court in M/s Balram Singh v. Union of India & Ors. [Civil Writ Jurisdiction Case No. 88 of 2023 dated January 20, 2023] quashed and set aside the ex-parte assessment order passed by the Revenue Department rejecting the Input Tax Credit (“ITC”) claim of the assessee and imposing the tax liability of INR 10,06,826/- , on the grounds that it was passed in violation of the principles of natural justice without providing opportunity of hearing or sufficient time to the assessee to represent its case, which entails civil consequences. Held that, opportunity of hearing shall be afforded to the assessee to place on record all essential documents and materials.
Facts:
This petition has been filed by M/s Balram Singh (“the Petitioner”) challenging the ex parte summary assessment orders dated February 16, 2020 and February 18, 2020 (“the Impugned Orders”) passed by the Revenue Department (“the Respondent”) for the period October 2018 to March 2019 wherein, ITC claim of the Petitioner was rejected and tax amounting to INR 10,06,826/- including penalty/interest was imposed without providing any further notice to the Petitioner. Further, the Respondent seized INR 20,00,000/- from the cash credit ledger of the Petitioner by way of recovery against the total liability.
Issue:
Whether the Impugned Orders passed by the Respondent are in violation of principles of natural justice?
Held:
The Hon’ble Patna High Court in Civil Writ Jurisdiction Case No. 88 of 2023 held as under:
