Shyam Electric Vs Union of India (Patna High Court)
In, the Patna High Court allowed a writ petition challenging an ex parte assessment order passed under Section 73 of the Bihar Goods and Services Tax Act, 2017 for Financial Year 2018-19. The petitioner sought quashing of the assessment order dated 24.04.2024 and the consequential demand raised in Form DRC-07 on the ground that no proper opportunity of hearing had been granted and notices were not duly served in accordance with the statutory provisions.
The case arose from a show cause notice dated 25.10.2023 issued by the Assistant Commissioner, State Tax, Patna West Circle, requiring the petitioner to submit a reply by 25.11.2023. Thereafter, reminders dated 05.12.2023 and 06.04.2024 were issued fixing dates for personal hearing. The petitioner eventually submitted a response to the show cause notice on 10.04.2024 in Form GST DRC-06 and specifically opted for personal hearing at serial no. 7 of the form. However, without granting such hearing, the Deputy Commissioner of State Tax passed the impugned order dated 24.04.2024 determining tax, interest and penalty totaling Rs.26,08,987/-.
The petitioner argued that Section 75(4) of the BGST Act mandates grant of opportunity of hearing whenever a written request is made or where an adverse decision is contemplated. It was also contended that Section 75(5) permits adjournment up to three times and that only two hearing opportunities had been granted before passing the order. According to the petitioner, failure to provide personal hearing despite written request amounted to violation of principles of natural justice.
