Ex-parte Order Passed without Adequate Time and Reasons to be Set Aside: HC

Case Details: Lucky Traders v. State of Bihar - [2023] 150 taxmann.com 338 (Patna)

Judiciary and Counsel Details

• • Sanjay Karol, CJ & Partha Sarthy, J.
  • D.V. Pathy, Adv. for the Appellant.
  • Vikash Kumar for the Respondent.

Facts of the Case

In the instant case, the department passed an ex-parte order under section 73 and rejected the input tax credit claim of petitioner. The petitioner filed writ petition and contended that order was passed without providing sufficient time and no reasons were mentioned to reject claim of input tax credit.

High Court Held

The Honorable High Court noted that the input tax credit claim of the petitioner has been rejected and tax, including interest and penalty, has been imposed. However, no sufficient time was afforded to the petitioner to represent his case which was also evident from the records submitted.

Moreover, the Court also noted that the order passed was ex-parte in nature and didn’t assign any sufficient reasons as to how the officer could determine the amount due and payable by the petitioner. Therefore, the Court held that the impugned order was quashed and the Assessing Authority shall pass a fresh order only after affording adequate opportunity.