Order Date: 17 August 2022

Facts-

• The Petitioner, M/s G. Power Solutions is a Proprietorship Firm has prayed for quashing the impugned Order  passed by the Revenue Department under Section 73(9) of the Bihar Goods and Services Tax Act, 2017 whereby the ITC claimed by the Petitioner was denied for having been claimed after the expiry of due date. The consequential demand was raised in Form GST DRC-07.
• The notice issued to a third person in Form GST DRC-13, issued by the Respondent to the banks wherein the direction was issued to freeze all the bank accounts of the Petitioner and his firm without even informing to the Petitioner.
• The Petitioner contended that the order is ex-parte in nature.

Issue-

• Whether the prayers made by the Petitioner for quashing the above orders is sustainable?

Order-

• The Division Bench of Hon’ble High Court observed that the order is bad in law for two reasons- (a) violation of principles of natural justice i.e. no sufficient time was afforded to the Petitioner to represent his case; (b) order passed ex-parte in nature, does not assign any sufficient reasons even decipherable from the record, as to how the officer could determine the amount due and payable by the Petitioner.
• The Court set aside and quashed the Impugned order; Summary of the order in Form GST DRC-07 and the notice to a third person in Form GST DRC-13, issued by the Respondent.
• The Petitioner undertakes to deposit 20% of the amount of the demand raised before the Assessing Officer within four weeks and such deposit shall be without prejudice to the rights and contention of the parties.
• The Court Stated that, the .amount deposited in excess by the Petitioner shall be refunded within two months from the date of passing the order and Directed for de-freezing of the bank accounts of the Petitioner, if attached in reference to the proceedings.
• The Petition stands disposed of.