The Orissa High Court had set aside the impugned order under specific conditions. Firstly, the petitioner is required to file a reply to the show cause notice by July 8, 2024. Subsequently, the Assessing Authority (AA) will review the matter on July 11, 2024. Following the hearing, a new assessment order must be issued within two months. If the petitioner is dissatisfied with the new assessment, the petitioner can seek relevant remedies.
Ashok Kumar Rayet, the petitioner/assessee, filed a writ petition against an order dated 17.05.2024 of the Assistant Commissioner, GST & Central Excise,Cuttack under Sections 73(1), 75 and 78 of the Finance Act, 1994 along with interest and penalty for the tax period 2014-15.
Section 73(1), 75 and 78 of the Finance Act, 1994, provides a framework for tax enforcement.Section 73(1) allows for the recovery of unpaid or incorrect tax after issuing a show cause notice. Section 75 covers the determination of the correct tax amount, including any interest and penalties. Section 78 specifies penalties for deliberate tax evasion, based on the extent of the evasion.
The petitioner was unable to appear and did not submit a reply to the show cause notice that was issued before the assessment order. The petitioner has detailed in the petition that the notice was not served and due to which the petitioner was not able to reply to the show cause notice.
A division bench of Justice Dr. B. R Sarangi and G. Satapathy hearing both the sides, disposed of the writ petition stating that the petitioner need to be given another opportunity to file a reply to the show cause notice and then appear before the AA for a new assessment order.
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