M/S Neelam Rubbers vs. The Commnr. Of CT And GST, Odisha

Facts

The Petitioner, M/s. Neelam Rubbers, has challenged an ex parte order dated 16th April 2022 passed by the Joint Commissioner of CT & GST, Balasore Circle, Balasore. This order was issued under Section 74 of the OGST Act, 2017, for the tax period May 2020 to March 2021. The Petitioner did not appear before the authority or file a reply to the show cause notice (SCN) dated 21st February 2022, which preceded the assessment order. The Petitioner submitted that her absence was due to a gynecological medical condition for which she was undergoing treatment, and a medical certificate was enclosed with the petition.

Held

The Court held that the Petitioner ought to be given one more chance to participate in the assessment proceedings. The reasoning was based on the Petitioner's explanation of her medical condition, supported by a medical certificate, which prevented her from responding to the show cause notice and appearing before the assessing authority. The Court acknowledged the Petitioner's inability to present her case. The ratio decidendi is that principles of natural justice require an opportunity for a hearing, and where a party is prevented from doing so due to genuine medical reasons, the ex parte assessment order should be set aside to allow for a fresh assessment after due compliance. The Court set aside the impugned assessment order dated 16th April 2022 and directed the Petitioner to file a reply to the SCN by 2nd May 2023. The Joint Commissioner was directed to take up the matter on 8th May 2023, hear the Petitioner, and pass a fresh assessment order within two months thereafter.

Key Issues

1. Whether the Petitioner should be granted an opportunity to file a reply to the show cause notice and participate in the assessment proceedings, given her medical condition preventing her appearance and response. This issue turns on the principles of natural justice and the discretion of the Court under writ jurisdiction. Contentions: Petitioner: Argued that due to a medical ailment, she was unable to respond to the SCN or appear before the assessing authority, and therefore, the ex parte order should be set aside to allow her a fair hearing. A medical certificate was provided as evidence. Revenue/State: The judgment does not record any specific arguments made by the Opposite Parties (The Commissioner of CT and GST, Odisha and another).