Patna High Court
M/s. Shyam ElectricversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The assessment order dated 24‑04‑2024 is quashed because the officer failed to grant a hearing after a written request, violating Section 75 and the principles of natural justice.
Summary
M/s Shyam Electric filed a writ petition challenging an ex parte assessment order dated 24‑04‑2024 under the Bihar Goods and Services Tax Act, 2017, which imposed a tax liability of Rs 26,08,987 without granting a personal hearing or proper service of notice. The petitioner argued that the Deputy Commissioner violated Section 75(4) and 75(5) by not providing an opportunity of hearing after a written request on 10‑04‑2024, and that the order was passed without service as required by Section 169, breaching natural justice. The respondents contended that the petitioner had already been given two reminders and that further opportunity could be provided if the petitioner appeared before the court‑appointed hearing. The Court held that a written request for a personal hearing obliges the officer to grant it before passing an adverse order, and that the failure to do so amounted to a miscarriage of justice. Consequently, the Court quashed the assessment order and remanded the matter for a personal hearing on 05‑05‑2026, with a warning that the order would revive if the petitioner failed to appear.
Issues considered
- Whether the Deputy Commissioner violated Section 75(4) and 75(5) of the Bihar GST Act by not granting a personal hearing after a written request.
- Whether the assessment order was passed without valid service of notice under Section 169, thereby violating principles of natural justice.
- Whether the ex parte assessment order should be quashed and the matter remanded for a hearing.
Subjects
- GST
- ex parte assessment
- natural justice
- opportunity of hearing
- tax assessment
- Bihar State Tax
- Section 75
- Section 169
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.11303 of 2025
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M/s. Shyam Electric a Proprietary concern having its place of business at
Chandni Chowk Market, Frazer Road, P.S. Kotwali, Town and District Patna
through its Proprietor, Om Prakash Lath, aged about 65 years, son of Late
Shyam Prasad Lath, Resident of Shyam Bhawan, New Punaichak, Near R D
Tower, Bishwaraiya Bhawan, Phulwari, P.S. Sashtri Nagar, District Patna.
... ... Petitioner
Versus
1. The Union of India through the Secretary, Ministry of Finance, Government
of India, New Delhi.
2. The Secretary, Ministry of Finance, Government of India, New Delhi.
3. The State of Bihar through the Commissioner of State Tax cum Secretary,
Department of State Tax, Government of Bihar, Main Secretariat, Patna.
4. The Commissioner of State Tax cum Secretary, Department of State Tax,
Government of Bihar, Main Secretariat, Patna.
5. The Additional Commissioner of State Tax, Patna Division, Patna.
6. The Deputy Commissioner of State Tax, Patna West Circle, Patna.
7. The Joint Commissioner, State Tax, Patna West Circle, Patna.
8. The Assistant Commissioner, State Tax, Patna West Circle, Patna.
... ... Respondents
======================================================
Appearance :
For the Petitioner : Mr. Mohit Agarwal, Advocate
Mr. Rahul Kumar, Advocate
Mr. Vikash Khanna, Advocate
For the CGST : Ms. Shilpi Keshri, Advocate
For the State : Mr. Kumar Vivek, GP-7
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
ORAL JUDGMENT
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
Date : 15-04-2026
Heard the learned counsel for the parties.
2. The present writ petition has been filed seeking
the following reliefs:
“(a) For quashing the ex parte Assessment
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Order dated 24.04.2024 passed under Section 73
of the BGST Act, 2017 by the Respondent Deputy
Commissioner, State Tax, Patna West Circle, Patna
and subsequent demand raised in Form DRC 07
dated 24.04.2024 with respect to Financial Year
2018-19 as the same has been passed without
granting any opportunity of hearing as
contemplated under Section 75 of the BGST Act,
2017 and also without service of any notice, much
less, show cause notice by any mode of service as
contemplated under Section 169 of the BGST Act,
2017 and also ignoring the fact that a proceeding
with respect to similar Financial Year initiated
vide show cause notice dated 12.02.2020 was also
pending, the copy of which was also never served
to the Petitioner by any mode as contemplated
under Section 169 of the BGST Act, 2017;
(b) For holding that passing of the ex parte
impugned assessment order dated 24.04.2024
without granting an opportunity of hearing as
contemplated under Section 75 of the BGST Act,
2017 is violation of principle of natural justice and
also ignoring the fact that one earlier proceeding
with respect to similar Financial Year vide show
cause notice dated 12.02.2020 was also pending
under consideration and, therefore, the impugned
ex parte assessment order is liable to be quashed;
(c) For holding that as the Petitioner Firm
was not served with the purported show cause
notices or the impugned ex parte assessment order
by a valid mode of service as contemplated under
Section 169 of the BGST Act, 2017, the same
amounts to principle of natural justice and the
impugned order is liable to be quashed and set
aside;
(d) For holding that in the facts of the
present case, the impugned assessment order dated
24.04.2024 is an ex parte order as no notices were
ever served upon the Petitioner firm in terms of
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Section 169 of the BGST Act, 2017 nor the
Petitioner was granted an opportunity of hearing
in terms of Section 75(4) of the BGST Act, 2017;
(e) For holding that the Respondent Deputy
Commissioner of State Tax, Patna West Circle,
Patna could not have initiated a fresh proceeding
vide show cause notice dated 25.10.2023 as for the
similar Financial Year a show cause notice in
Form DRC 01 dated 12.02.2020 was already
initiated, though the copy of which was also never
served upon the Petitioner as the grounds for
initiation of proceedings in both the show cause
notices wherein mostly similar and identical;
and/or for any other relief(s) as Your Lordships
may deem fit and proper in the facts of the present
case and in the interest of justice.”
3. The brief facts of the case are that a show cause
notice dated 25.10.2023 for the tax period: April, 2018 - March,
2019 was issued to the petitioner by the Assistant
Commissioner, State Tax, Patna West Circle, Patna, wherein the
reply was required to be submitted by the petitioner by
25.11.2023. Thereafter, a reminder dated 05.12.2023 was issued
to the petitioner by the Office of the Assistant Commissioner,
State Tax, Patna West Circle, Patna fixing the date of personal
hearing as 08.12.2023 at 12:35 hours. Again a reminder dated
06.04.2024 was issued to the petitioner by the Office of the
Deputy Commissioner, State Tax, Patna West Circle, Patna,
fixing the date of hearing as 09.04.2024 at 13:01 hours. The
petitioner ultimately submitted response to the show cause
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notice on 10.04.2024 in form GST DRC - 06, wherein at serial
no. 7 he had opted for personal hearing, however, no personal
hearing was granted to the petitioner and instead Office of the
Joint Commissioner, State Tax, Patna West Circle, Patna, has
passed the impugned order dated 24.04.2024 under the pen and
signature of Deputy Commissioner of State Tax, Patna West
Circle, Patna, fixing tax liability along with interest and penalty,
totaling to a sum of Rs. 26,08,987/-.
4. The learned counsel for the petitioner submits
that under Section 75(5) of the Bihar Goods and Services Tax
Act, 2017 (hereinafter referred to as “Act, 2017”), the proper
officer is required to grant time to the assessee and adjourn the
hearing for reasons to be recorded in writing, if sufficient cause
is shown by the person chargeable with tax, however no
adjournment shall be granted for more than three times to a
person during the proceedings. Thus, it is submitted that since
only two reminders were issued to the petitioner, whereafter the
petitioner had filed his reply to the show cause on 10.04.2024,
seeking opportunity of personal hearing, the assessing officer
ought to have granted an opportunity to the petitioner to file his
reply and advance his arguments personally.
5. Reliance has also been placed on Section 75(4)
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of the Act, 2017, which is reproduced hereinbelow:
“An opportunity of hearing shall be granted
where a request is received in writing from the
person chargeable with tax or penalty, or where
any adverse decision is contemplated against such
person.”
6. In view of the aforesaid, it is submitted by the
learned counsel for the petitioner that at least one opportunity be
granted to the petitioner to file his reply and appear before the
Assessing Officer to advance arguments, failing which the
petitioner undertakes that the demand so raised by the
respondents would be paid by the petitioner.
7. Per contra, the learned counsel for the
respondent State has vehemently opposed the present petition by
submitting that three opportunities have already been granted to
the petitioner in as much as after issuance of show cause notice
to the petitioner on 25.10.2023, reminders dated 05.12.2023 and
06.04.2024 were also issued to the petitioner, however the
petitioner did not avail the said opportunities in as much as he
neither filed any show cause reply nor appeared before the
concerned authority on the dates so fixed, nonetheless it is
submitted that he is not averse to the idea of the matter being
remanded back by way of final opportunity. Therefore, it is
submitted that in case the matter is being remanded back to the
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authorities, it be stipulated that in case the petitioner does not
appear before the Assessing Officer along with his show cause
reply on the date so fixed by this Court, the impugned order
dated 24.04.2024 passed by the Office of the Joint
Commissioner, State Tax, Patna, West Circle, Patna, shall stand
revived and the petitioner shall be liable to pay the total demand
amount.
8. We have heard the learned counsel for the parties
and perused the materials on record. It is apparent from the
records that opportunity of personal hearing was afforded to the
petitioner only twice, i.e. vide reminders dated 05.12.2023 and
06.04.2024, however Section 75(5) of the Act, 2017 permits that
an adjournment can be granted for three times. Another aspect
of the matter is that in the reply to the reminder show cause
dated 06.04.2024, the petitioner had filed his response on
10.04.2024 in form GST - DRC - 06 and at serial no. 7 thereof,
he had opted for personal hearing, however no personal
hearing was accorded to the petitioner and instead
the impugned order dated 24.04.2024 was passed under
the pen and signature of Deputy Commissioner of State Tax,
Patna West Circle, Patna, fixing tax liability along with interest
and penalty totaling to the sum of Rs. 26,08,987/-. At this
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juncture, we may take note of Section 75(4) of the Act, 2017,
which mandates grant of an opportunity of hearing where a
request in writing is received from the person chargeable with
tax or penalty of where any adverse decision is contemplated
against such person. Thus, in view of a request having been
admittedly received by the proper officer in writing for personal
hearing on 10.04.2024, it was incumbent upon the proper officer
to have granted an opportunity of hearing to the petitioner prior
to passing of the impugned order dated 24.04.2024, thus the said
omission on the part of the proper officer has resulted in
miscarriage of justice and violation of the principles of natural
justice making the impugned order dated 24.04.2024 liable to be
set aside.
9. Having regards to the facts and circumstances of
the case and for the foregoing reasons, we deem it fit and proper
to quash the order dated 24.04.2024 passed by the Deputy
Commissioner of State Tax, Patna West Circle, Patna, and
remand the matter back to him, fixing 05.05.2026 as the date of
personal hearing, on which date the petitioner / its proprietor /
authorized representative shall appear before the Concerned
Officer at 12:35 PM and submit show cause reply as also
advance arguments, failing which the order dated 24.04.2024
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shall stand revived and the petitioner shall be liable to
immediately deposit the total demand amount of Rs. 26,08,987/-
as also other such sums which may have become due and
payable in the meantime.
10. Accordingly, the writ petition stands disposed
of with the aforesaid observations and directions.
(Mohit Kumar Shah, J)
(Arun Kumar Jha, J)
Shahnawaz/-
AFR/NAFR AFR
CAV DATE N/A
Uploading Date 22.04.2026
Transmission Date N/A
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