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2021 DIGILAW 561 (PAT)

Amrita Trading Company v. State Of Bihar

2021-07-01

S.KUMAR

body2021
JUDGMENT Sanjay Karol, J. - Our attention is invited to the Circular dated 11th of August, 2020, issued by the Government of India, Ministry of Finance, Department of Revenue (State Taxes-I Section), and Circular dated 27th of October, 2020, issued by the Government of India, Ministry of Finance, Department of Revenue (Central Board of Indirect taxes & Customs) Legal Cell, copy whereof is taken on record. 2. In view of the same, Union of India be impleaded as Party Respondent No. 5. 3. Registry to make necessary correction, both on the digital as also the hard file. 4. Dr. K.N. Singh, learned Additional Solicitor General and Shri Anshuman Singh, Sr. S.C., CGST & CX enter appearance on behalf of the newly added respondents. 5. Petitioner has prayed for the following relief(s): "(i) For issuance of a writ in the nature of 'cirtiorari' for setting aside the expartee order dated 04.12.2018 passed by the respondent No. 2 u/s 73 of the Bihar Goods and Services Tax Act 2017 (hereinafter referred to as Act 2017) whereby and whereunder the Input Tax Credit Claim filed in TRAN-1 amounting to Rs. 3,12,450/- has been rejected in absence of evidence/verification and has imposed a penalty of 10% and total amount of tax has been quantified as Rs. 3,43,695.00 as also the DRC-07 dated 04.12.2018 and all consequential order. (ii) For further setting aside the letter vide process No. 76 dated 11.01.2021 issued u/s 79(1)(c) of the Act 2017 under the signature of respondent No. 2 whereby and whereunder the Branch Manager of Bank of Baroda has been directed to pay a sum of Rs. 343695/-. (iii) For further restraining the concerned Bank from complying the aforesaid notice u/s 79(1)(c) of the Act 2017 as the very order u/s 79 of the Act is an expartee order and if during pendency of the writ application the same has been complied to refund the same. (iv) For further to set aside the notice dated 27.10.2018 (not served) whereby the petitioner has been show caused as to why the said amount of Rs. 3,12,425/- should not be paid as the same was never validly served upon the petitioner after taking decision to reject the claim filed under Section 140 of the Act. (v) For further to quash all the consequential order/direction pursuant to order dated 04.12.2018 if any. 3,12,425/- should not be paid as the same was never validly served upon the petitioner after taking decision to reject the claim filed under Section 140 of the Act. (v) For further to quash all the consequential order/direction pursuant to order dated 04.12.2018 if any. (vi) For any other relief/reliefs to which the petitioner may be entitled in the facts and circumstance of the case." 6. Petitioner has filed the instant petition praying, inter alia to quash the impugned order dated 4th of December, 2018 (Annexure-4) passed by the Joint Commissioner of State Taxes (Incharge), Muzaffarpur, East Circle, Muzaffarpur in GSTIN-10AHOPS8532N2ZR for the period 2017-18 and the order dated 4th of December, 2018 in form DRC-07. Learned counsel for the petitioner states that the entire amount in terms of the demand raised by the department stands recovered from the petitioner. 7. Learned counsel for the Revenue, states that he has no objection if the matter is remanded to the Assessing Authority for deciding the case afresh. Also the case shall be decided on merits and during pendency of the case, no coercive steps shall be taken against the petitioner. 8. Statement accepted and taken on record. 9. Having heard learned counsel for the parties as also perused the record made available, we dispose of the present petition in the following mutually agreeable terms:- (a) We quash and set aside the impugned order dated 4th of December, 2018 (Annexure-4) passed by the Joint Commissioner of State Taxes (Incharge), Muzaffarpur, East Circle, Muzaffarpur in GSTIN- 10AHOPS8532N2ZR for the period 2017-18 and the order dated 4th of December, 2018 in form DRC-07; (b) The case shall be decided on merits by passing a speaking order; (c) If it is ultimately found that the amount recovered from the petitioner is in excess, the same shall be refunded within two months from the date of passing of the order; (d) We also direct for de-freezing/de-attaching of the bank account(s) of the writ-petitioner, if attached in reference to the proceedings, subject matter of present petition. This shall be done immediately. This shall be done immediately. (e) Petitioner undertakes to appear before the Assessing Authority on 9th of August, 2021 at 10:30 A.M., if possible through digital mode; (f) The Assessing Authority shall decide the case of the petitioner on merits after complying with the principles of natural justice; (g) Opportunity of hearing shall be afforded to the parties to place on record all essential documents and materials, if so required and desired; (h) During pendency of the case, no coercive steps shall be taken against the petitioner. (i) The Assessing Authority shall pass a fresh order only after affording adequate opportunity to all concerned, including the writ petitioner; (j) Petitioner through learned counsel undertakes to fully cooperate in such proceedings and not take unnecessary adjournment; (k) The Assessing Authority shall decide the case on merits expeditiously, preferably within a period of two months from the date of appearance of the petitioner; (l) Liberty reserved to the petitioner to challenge the order, if required and desired; (m) Equally, liberty reserved to the parties to take recourse to such other remedies as are otherwise available in accordance with law; (n) We are hopeful that as and when petitioner takes recourse to such remedies, before the appropriate forum, the same shall be dealt with, in accordance with law, with a reasonable dispatch; (o) We have not expressed any opinion on merits and all issues are left open; (p) If possible, proceedings during the time of current Pandemic [Covid-19] be conducted through digital mode; 10. The instant petition sands disposed of in the aforesaid terms. 11. Interlocutory Application(s), if any, also stands disposed of. 12. Learned counsel for the respondents undertakes to communicate the order to the appropriate authority through electronic mode.