The High Court of Orissa set aside an ex parte assessment order, citing the failure to serve notice and directing a fresh hearing.
The petitioner, M/s. Krishna Motors, challenged the order dated 24.03.2023 issued by the Assistant Commissioner, GST & Central Excise, Jharsuguda Division under Sections 73(2), 75, and 77(1)(c)(ii) of the Finance Act, 1994. This order included interest and penalties for the tax period 2015-16.
The crux of the petitioner’s challenge was that the impugned order was passed ex parte. The petitioner, represented by the Proxy Counsel on behalf of I. Tripathy, explained that the petitioner was unable to appear and did not file a reply to the show cause notice (SCN) preceding the assessment order. The counsel detailed that no notice was served to them, which hindered their ability to respond to the SCN.
The bench of Justices B.R Sarangi and G. Satapathy found that the petitioner should be afforded another opportunity to reply to the SCN and to appear before the assessing authority.
The Court directed that the petitioner shall file a reply to the SCN on or before 19.07.2024. The matter will be taken up by the opposite party on 22.07.2024, and after hearing the petitioner, a fresh assessment order shall be passed within a period of two months thereafter. If the petitioner remains aggrieved by such an order, they may seek appropriate remedies in accordance with the law.
The court set aside the impugned assessment order dated 24.03.2023 and disposed of the writ petition. The opposite parties included the Deputy Commissioner, CGST & Central Excise, Jharsuguda Division, and another party, represented by M. Agarwal, Jr. Standing Counsel for CGST.
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