While dismissing a petition challenging a show-cause notice issued under section 74 of the CGST/OGST Acts, a two-judge bench of the Orissa High Court directed the petitioner to approach the proper officer after filing an objection to the notice by availing the alternative remedy.
Advocate Mr. Sanjeev Udgata, the counsel for the Petitioner submitted that the notice was issued by an officer having no jurisdiction over the matter and that the Opposite Parties sought to restrict him to avail input tax credit from his electronic credit ledger. He further submitted that the instructions cannot have the overriding effect over the provisions of the statue.
Justices Jaswant Singh and M S Raman observed that during the course of hearing, the Petitioner admitted that though he had adjusted its tax liability against input tax credit available in the electronic credit ledger, he has not paid interest against such delayed adjustment/payment.
“We are of the view that disputed facts arising in the matter are required to be adjudicated by the Proper Officer. The Petitioner is at liberty to file his Show Cause reply and raise objections including jurisdictional issue,” the bench said.
While concluding, the bench added that “Counsel for the Petitioner submits that the period allowed for filing Show Cause reply has been elapsed during the pendency of this writ petition. It is, therefore, directed that the Petitioner is at liberty to file its reply/objection before the Proper Officer within a period of 15days hence. It is open to the Proper Officer to deal with each objection and pass reasoned order therefore.”
Sri Rajendra Narayan Mohanty VS CT &GST Cuttack-1 East Circle, & Others
CITATION: 2022 TAXSCAN (HC) 144
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