Summary Order in GST DRC-07 quashed by Patna High Court for violating the principles of natural justice

Last updated: 27 October 2021

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The Patna High Court has overturned a GST DRC-07 order against K.R. Steel Traders, finding it violated the principles of natural justice. The court ruled that the petitioner was not given a fair opportunity to present their case, and the order was made ex parte without sufficient justification. The bank accounts of the petitioner were ordered to be unfrozen, and a fresh order must be passed after providing adequate hearing. K.R. Steel Traders has also agreed to deposit 10% of the demanded amount within four weeks, without prejudice to their rights.

Court :
Patna House Court

Brief :
In M/s K.R. Steel Traders v. The State of Bihar [Civil Writ Jurisdiction Case No.17795 of 2021 dated October 21, 2021], M/s K.R. Steel Traders ("the Petitioner") filed petition being aggrieved against Order dated August 16, 2019 passed by the Joint Commissioner of State Taxes, Patna South Circle and Summary Order in Form GST DRC-07 dated August 29, 2019 passed by Deputy Commissioner of State Tax Patna South, Jurisdiction- Patna South, Patna in which the appeal of the Petitioner has been rejected merely on the grounds of being barred by limitation and both the orders were ex parte in nature.

Citation :
Civil Writ Jurisdiction Case No.17795 of 2021 dated October 21, 2021

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