M/S. A.C.C. LTD vs. State Of Odisha

1. Beseeching to nullify the direction to deposit the outstanding interest amount under Section 7(5) of the Odisha Entry Tax Act, 1999 for the tax periods covering 01.04.2008 to 30.06.2017 vide letters dated 13.06.2025, 31.07.2025 and 01.09.2025, the petitioner-company has come up before this Court by way of the instant writ petition alleging that calculation sheet as supplied to the petitioner is inchoate and the demand of interest depicted in the said letters/intimations cannot be sustained inasmuch as the same are issued without calling for reply/explanation.

Mr. Jagabandhu Sahoo, learned Senior Advocate drew the attention of this Court to a document enclosed to letter dated 01.09.2025 to demonstrate that information supplied to the petitioner with respect to calculation of interest for the aforesaid tax periods is defective.

On 30.10.2025, on the request of Mr. Sunil Mishra, learned Standing Counsel, the matter stood adjourned to 07.11.2025 to furnish instruction regarding calculation furnished to the petitioner vide Annexure-9. On 07.11.2025, Mr. Mishra handed over/supplied the corrected copies of calculation sheet with respect to interest pertaining to tax periods from April, 2008 to June, 2017 to the learned counsel for the petitioner.

When the matter is taken up today, it is conceded by learned Standing Counsel that neither opportunity of hearing was afforded nor was show cause given to the petitioner. Yet, an attempt is made by him to demonstrate that after finalization of issue with respect to exigibility of entry tax on goods imported from abroad by the Hon’ble Supreme Court of India, the petitioner was liable to discharge not only the tax liability as disclosed in the returns but also the interest on the withheld part of the tax which remained unpaid during the said period(s).

Heard Mr. Jagabandhu Sahoo, learned Senior Advocate and Mr. Sunil Mishra, learned Standing Counsel.

It is admitted by the learned Standing Counsel that the fresh calculation sheet shows that the amount of interest as depicted in Annexure-9 to the writ petition has been reduced. In view of the fact as conceded that the petitioner was not supplied with proper calculation sheet and it was not put to notice calling for furnishing show cause reply, this Court is of the considered view that the direction to deposit interest amount under Section 7(5) of Odisha Entry Tax Act vide letters dated 13.06.2025, 31.07.2025 and 01.09.2025 is in flagrant violation of principles of natural justice.

Without expressing any opinion on the merit of the matter, appreciating the fact that the calculation of interest component is erroneous as supplied to the petitioner vide Annexure-9, it is deemed prudent to direct the petitioner to appear before the authority concerned and furnish reply/explanation treating the aforesaid letters issued by the Joint Commissioner of CT and GST, CT and GST Circle, Bargarh as the show cause notice/intimations.

To avail such opportunity of hearing, the petitioner is directed to appear before the said authority on or before 21.11.2025 and furnish its reply/explanation. On receipt of such reply/explanation, the authority concerned shall proceed to hear the petitioner on such dates(s) as he may deem fit and proper.

Needless to say that the petitioner shall cooperate with the Department and it shall not be granted unnecessary adjournments.

The authority concerned shall consider the reply/explanation of the petitioner and determine the liability with respect to interest afresh not later than 08.12.2025. The decision shall be communicated to the petitioner forthwith.

With the above observations and directions, the writ petition stands disposed of and pending interlocutory application(s), if any, shall also be disposed of.