M/S Subhamukti Agency, Cuttack vs. Commissioner Of CT And GST

Facts

The petitioner, M/s. Subhamukti Agency, approached the High Court of Orissa challenging two ex parte orders. The first order was passed by the Proper Officer (CT & GST Officer), Cuttack City-I Circle, on 22nd October 2020. The second impugned order was passed by the appellate authority on 30th November 2021. The petitioner's primary contention was that the show-cause notice issued under Section 73 of the OGST Act dated 8th September 2020, and the subsequent adjudicating order dated 22nd October 2020, were not served upon them. The appeal order was also passed ex parte.

Held

The Court held that the matter should be remanded to the adjudicating authority for fresh adjudication. The reasoning was based on the petitioner's contention that the show-cause notice and the original order were not served, leading to ex parte proceedings. The Court found merit in this procedural grievance. Consequently, the impugned order dated 30th November 2021 of the appellate authority and the order dated 22nd October 2020 passed by the Proper Officer (CT & GST Officer), Cuttack City-I Circle, were set aside. The matter was remanded to the Proper Officer for a fresh adjudication order after providing the petitioner an opportunity to be heard and to file a reply to the show-cause notice. The Court directed the petitioner to appear before the Proper Officer on 3rd March 2022 with their reply, and the reasoned adjudication order was to be passed by 2nd May 2022 and communicated by 9th May 2022. The Court explicitly stated it had not expressed any opinion on the merits of the case.

Key Issues

1. Whether the ex parte adjudicating order dated 22nd October 2020, and the subsequent ex parte appellate order dated 30th November 2021, are liable to be set aside on the grounds of non-service of the show-cause notice and the original order on the petitioner? (Question of law and fact, turning on principles of natural justice and procedural fairness under the OGST Act). Petitioner's Contention: The petitioner argued that the show-cause notice and the adjudicating order were not served, leading to ex parte proceedings and orders, violating principles of natural justice. They relied on the fact that both the initial adjudication and the appeal were decided without their participation or knowledge. Revenue's Contention: The revenue, represented by Mr. Sunil Kumar Mishra, ASC (CT & GST), filed a Memo dated 24th January 2022, along with certain documents, indicating their position and likely consenting to a fresh adjudication.