Ex-parte assessment order passed in violation of the principles of natural justice entails civil consequences

Last updated: 30 January 2023

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The Patna High Court has quashed an ex-parte assessment order that rejected an assessee's Input Tax Credit claim and imposed a significant tax liability. The court found that the order was passed in violation of the principles of natural justice, as the assessee was not given a proper opportunity to be heard or present their case. This decision highlights the importance of fair hearings, especially when civil consequences are involved.

Court :
Patna High Court

Brief :
The Hon'ble Patna High Court in M/s Balram Singh v. Union of India & Ors. [Civil Writ Jurisdiction Case No. 88 of 2023 dated January 20, 2023] quashed and set aside the ex-parte assessment order passed by the Revenue Department rejecting the Input Tax Credit ("ITC") claim of the assessee and imposing the tax liability of INR 10,06,826/- , on the grounds that it was passed in violation of the principles of natural justice without providing opportunity of hearing or sufficient time to the assessee to represent its case, which entails civil consequences. Held that, opportunity of hearing shall be afforded to the assessee to place on record all essential documents and materials.

Citation :
Civil Writ Jurisdiction Case No. 88 of 2023 dated January 20, 2023

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