M/S Syndicates Scrap Processing vs. Joint Commnr. Of State Tax, Enforcement
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The petitioner, M/s Syndicates Scrap Processing, filed a writ petition before the High Court of Orissa at Cuttack challenging an order dated 23.03.2022 passed by the Joint Commissioner of Sales Tax, Enforcement. The petitioner contended that the assessment order, passed under Section 74(5) of the OGST Act, was unsustainable as it lacked reasons, did not include uploaded relevant documents, and was passed without providing an opportunity of hearing. The Revenue Department, represented by the Additional Standing Counsel, conceded that the impugned order did not assign any reasons and was passed without granting the petitioner an opportunity of hearing, thus agreeing that it could not be sustained.
Held
The Court held that the assessment order dated 23.03.2022 passed by the Joint Commissioner of Sales Tax, Enforcement, under Section 74(5) of the OGST Act was unsustainable in the eyes of law. This was because the order was passed without assigning any reasons and without providing the petitioner with an opportunity of hearing. The Court found merit in the contentions of both the petitioner and the Revenue Department on this point. Consequently, the Court quashed the impugned order. The matter was remitted back to the Assessing Officer to conduct a fresh assessment. The Assessing Officer is directed to provide the petitioner with an opportunity of hearing, consider any objections filed by the petitioner, and pass a reasoned and speaking order in accordance with the law.
Key Issues
1. Whether the assessment order dated 23.03.2022 passed by the Joint Commissioner of Sales Tax, Enforcement, under Section 74(5) of the OGST Act is liable to be quashed for being devoid of reasons and passed without affording an opportunity of hearing to the petitioner. Petitioner's Contention: The petitioner argued that the assessment order was invalid because it failed to provide any reasons for the demand raised and was passed without uploading the necessary documents or granting an opportunity for hearing, violating principles of natural justice. Revenue's Contention: The Revenue Department conceded that the impugned order lacked reasons and was passed without providing an opportunity of hearing to the petitioner, agreeing that it could not be sustained in law.
Sections Cited
Section 74(5)
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Cause title — parties, addresses and appearances
ORDER 23.03.2023
Order No.
This matter is taken up by hybrid mode.
Heard Mr. P.K. Harichandan, learned counsel appearing for the petitioner and Mr. Sunil Mishra, learned Addl. Standing Counsel appearing for Revenue Department.
The petitioner has filed this writ petition seeking to quash the order dated 23.03.2022 passed by opposite party no.1 under Annexure-1, by which assessment under Section 74 (5) of the OGST Act has been made against the petitioner.
Mr. P.K. Harichandan, learned counsel appearing for the petitioner contended that the assessment order has been passed by the authority under Annexure-1 without assigning any reason and, as such, the same only contains details of demand raised by the authority. More so, the notice along with the relevant documents has not been uploaded and, as such, no opportunity of hearing has also been given to the petitioner while passing the order impugned. Therefore, the same cannot be sustained in the eye of law.
Mr. Sunil Mishra, learned Addl. Standing Counsel appearing for Revenue Department stated that on perusal of order impugned it would be evident that no reason has been assigned by the authority and, as such, while passing such order no opportunity of hearing was also given to the petitioner. Therefore, the same cannot be sustained in the eye of law.
Having heard learned counsel for the parties and after going through the records, this Court finds that since the order impugned has been passed without assigning any reason and also without giving opportunity of hearing to the petitioner, the same cannot be sustained in the eye of law. Thereby, the order dated 23.03.2022 passed by the authority under Annexure-1 is liable to be quashed and is hereby quashed. The matter is remitted back to the Assessing Officer to assess it afresh by giving opportunity of hearing to the petitioner taking into consideration the objection, if any, filed by the petitioner in the matter, and pass a reasoned and speaking order in accordance with law.
The writ petition is accordingly disposed of.
Issue urgent certified copy as per rules.
Ashok/MRS
(DR. B.R. SARANGI)
JUDGE
(M.S. RAMAN)
JUDGE
Reproduced from the public record of the Orissa High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.