M/S. East Coast Constructions And Industries LTD., Bbsr vs. State Of Orissa
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Cause title — parties, addresses and appearances
ORDER 09.04.2025 02. 1. The order of the Assessing Officer dated 30th December, 2023 passed under Section-73 of the Odisha Goods and Services Tax (OGST) Act, 2017 is the subject matter of challenge in the instant writ petition. Several issues have been raised by the petitioner including the juri iction and the competence of the Assessing Officer (AO) exercising powers conferred under the OGST Act, 2017 in relation to the tax deducted at source or the credit available to the assessee prior to coming into force of the OGST Act, 2017. 2. The emphasis is put to the provisions contained under Section-140 of the OGST Act, 2017 concerning the transitional provisions in support of the contentions that, there is no fetter on the part of the authority to give credit available to the assessee prior to coming into force of the OGST Act, 2017 which in fact have been decided by several High Courts.
It is contended that, an extensive reply was given to the show cause notice issued under Section-73 not only raising the facts relevant for the purpose of an adjudication but also the nuances of the law as it stands. But the authorities have not taken into consideration the above aspect and proceeded simplicitor to discard the contention of the petitioner by a stroke of pen that it does not appear to be satisfactory.
We have been taken to different paragraphs of the said order and found that the authorities have neither returned any finding on the issue of facts nor on the points of the law raised in said reply. We also find an error in the opening paragraph of the said order, so far as the facts are concerned, which led to an inescapable conclusion that the authorities acted with a closed mind and in fact did not adjudicate the issues in proper manner.
There is no independent finding given by the authority both on the facts and law and so, we are left without any hesitation in our mind that the order is bereft of reasons. The importance of providing the reasons both in the administrative as well as the judicial dispensation is well-known and well-recognized. Providing the reasons not only assist the higher forum in deciding the issue but also for ascertaining the decision making process. The writ juri iction exercised by the High Court does not overreach the correctness of the decision, but the decision making process. Thus, the reasons being the heart and soul of an order, if not provided by the authority, it would be a dead letter.
We thus, find that the authorities have shirked their responsibility in not providing the reasons while adjudicating the issues raised before it and therefore, such order cannot be sustained.
The order impugned in the instant writ petition is thus quashed and set aside.
The authorities are directed to reconsider the case afresh after providing an opportunity of hearing to the assessee and shall pass the final order by recording proper reasons in accordance with law.
It is expected that the authorities will show some alacrity into the issues as the matter is pending since long, and the entire exercise is to be completed within two months from the date of the communication of this order. The assessee shall cooperate and assist the Assessing Officer and shall not indulge in unnecessary adjournments unless necessitated by unforeseen and unavoidable circumstances.
Further, for abundant precaution, we make it clear that the observations made herein, incidentally or accidentally, touching upon the merits of contentions of respective parties shall not have any persuasive effect and the authorities shall decide the same independently without being influenced thereby.
In view of quashing and setting aside the impugned order, any action taken thereupon shall fall and therefore, the consequential orders based thereupon, if any passed, are also quashed and set aside.
The writ petition is disposed of accordingly.
(Harish Tandon)
Chief Justice
(B.P. Routray) Judge
A. Nanda
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.