Facts of the Case

M/s Gudari Sah Ramanad Sah, a proprietary concern based in Siwan, Bihar, challenged an ex-parte assessment order dated 18.04.2024 passed under Section 73(5) of the Bihar Goods and Services Tax Act, 2017, along with the consequential demand raised in Form DRC-07 for Financial Year 2018-19. The petitioner contended that the order was passed without service of any show cause notice as contemplated under Section 169 of the BGST Act, and without granting an opportunity of hearing under Section 75(4). The Deputy Commissioner, State Tax, Siwan Circle, had proceeded ex-parte after the department claimed a notice and reminder were issued but went unanswered. The matter was heard by a Division Bench of the Patna High Court comprising Justice P. B. Bajanthri and Justice Shailendra Singh, which disposed of the writ petition by oral order dated 20.08.2025.

Issues Involved

  1. Whether the ex-parte assessment order under Section 73(5) of the BGST Act was validly passed without granting the petitioner an opportunity of oral hearing under Section 75(4).
  2. Whether uploading notices under the 'Additional Notices and Orders' tab, without proper service under Section 169, satisfies statutory requirements.
  3. Whether the assessment order deserves to be set aside and remanded for fresh adjudication.

Petitioner's Arguments

  • The assessment order dated 18.04.2024 was passed ex-parte without granting any opportunity of hearing as mandated by Section 75(4) of the BGST Act, 2017.
  • No show cause notice or the impugned order was validly served on the petitioner firm through any mode of service recognised under Section 169 of the BGST Act.
  • Mere uploading of notices under the 'Additional Notices and Orders' tab of the GST portal cannot be treated as valid service under Section 169.
  • The cumulative effect of non-service and denial of hearing amounted to a violation of natural justice warranting quashing of the order.

Respondent's Arguments

  • The department submitted that a show cause notice followed by a reminder had been issued to the petitioner, and since no response was received, the assessing authority proceeded to pass the ex-parte order.
  • The revenue did not dispute the requirement of compliance with Section 75(4) but relied on the notices allegedly already issued to justify the ex-parte proceeding.

Court Order / Findings

  • On perusal of the records, the Bench found it evident that there was non-compliance with sub-section (4) of Section 75 of the BGST Act, 2017, insofar as no oral hearing was afforded to the petitioner.
  • The Court held that this short ground of non-compliance with Section 75(4) alone was sufficient to interfere with the impugned assessment order, without needing to examine the other contentions on service under Section 169.
  • The impugned order was set aside and the matter remanded to the Assessment Officer to proceed afresh after giving ample opportunity to file a reply and an oral hearing to the petitioner.
  • The petitioner was directed to cooperate with the department, and the entire exercise was directed to be completed within three months from receipt of the order.
  • The writ petition was allowed.

Important Clarification

  • An ex-parte GST assessment order passed without an oral hearing under Section 75(4) is liable to be set aside even where the department claims to have issued a prior notice and reminder.
  • Courts are inclined to grant a time-bound remand (here, three months) rather than leave the assessee's liability open-ended when procedural defects are found.
  • The taxpayer's duty to cooperate with the fresh proceedings is typically made a condition of the relief granted.

Sections Involved

  • Section 73(5), Bihar GST Act, 2017 — governs self-ascertainment and determination of tax not paid or short paid for reasons other than fraud.
  • Section 75(4), Bihar GST Act, 2017 — mandates an opportunity of hearing before any adverse decision against a person chargeable with tax or penalty.
  • Section 169, Bihar GST Act, 2017 — prescribes the valid modes of service of notices, orders and other communications under the Act.

Decision – In Favour of

Decided in favour of the assessee. The ex-parte assessment order was set aside for want of a personal hearing under Section 75(4), and the matter remanded for fresh adjudication within three months after affording due opportunity to the petitioner.

Case Details

Court: High Court of Judicature at Patna
Case No.: Civil Writ Jurisdiction Case No.8901 of 2025
Coram: Hon'ble Mr. Justice P. B. Bajanthri and Hon'ble Mr. Justice Shailendra Singh
Date of Decision: 20.08.2025

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