Failure to serve Form GST ASMT-10 Prevented Filing of proper reply: Orissa HC Sets aside Assessment order passed u/s 73 of GST Act against OLA Fleet Technologies [Read Order]

OLA Fleet Technologies Private, the petitioner challenged the Assessment order dated 21st February, 2025 passed under Section 73 of the Central Goods and Services Tax Act, 2017/the Odisha Goods and Services Tax Act, 2017 (“GST Act”) by the Assistant Commissioner of State Tax, Bhubaneswar-II Circle, Bhubaneswar-opposite party no.2 for the tax periods from April, 2020 to March, 2021.

The petitioner asserted that it was never served with notice in Form GST DRC-01. It is affirmed that the notices/intimation(s) were not uploaded on the GST Portal much less communicated by electronic mail to the petitioner.

Want a deeper insight into the Income Tax Bill, 2025? Click here

Counsel appearing for the petitioner submitted that the input tax credit has been correctly disclosed in the monthly returns filed in Form GSTR-01 and Form GSTR-3B, yet the Department unilaterally disallowed the same without even affording opportunity of personal hearing.

He has taken this Court to a document at Annexure-4 of the writ petition, which reflects “no records found” against the menu “intimations-notices”. Hence with vehemence the counsel submitted that there is flagrant violation of principles of natural justice inasmuch as the webportal itself shows that no notice or intimation was uploaded/attached.

An additional affidavit dated 15th September, 2025 has come to be filed by the petitioner making a statement therein that response was filed in Form GST ASMT-11, dated 1st June, 2022 along with written statement to the notice in Form GST ASMT-10, dated 30th March, 2022.

It is further submitted by the counsel for the petitioner that the petitioner has not received any communication pursuant to scrutiny notice dated 30th March, 2022 as is evident from the screenshot of the GST Portal as has already been mentioned above. However, on accessing the GST Portal, it has come to its knowledge that the demand order for the Financial Year 2020-21 has been passed ex parte and was uploaded in the said portal.

How to Audit Public Charitable Trusts under the Income Tax Act Click Here

Referring to instructions issued by the Ministry of Finance Department of Revenue, Central Board of Indirect Taxes and Customs GST Policy, it is submitted that non-issue of summary of notices/orders electronically in the portal is clear violation of explicit provisions of GST Rules.

It is, therefore, fervently prayed to allow this writ petition by granting opportunity to present the case on behalf of the petitioner before the assessing authority for fresh adjudication. Standing Counsel appearing for the Department-opposite parties furnished instructions received from the Joint Commissioner of CT & GST, Bhubaneswar-II Circle, Bhubaneswar.

Though Standing Counsel vehemently objected to show indulgence in this matter, he conceded on the basis of instruction that certain inadvertent errors have crept in and that the instruction is silent with regard to the contention of the petitioner with respect to the following averment at paragraph-12 of the writ petition:

On bare reading of assessment order dated 21st February, 2025 it is revealed that “the instant taxpayer has been intimated regarding the excess claim of input tax credit in GST ASMT-10 u/s.61 of OGST Act vide Reference No.ZA210721000954U dated 20/07/2021, wherein the tax payer was directed to reply in GST ASMT-11 by 02/08/2021. In this connection, the taxpayer has neither replied nor produced any supporting document against the findings communicated vide ASMT10. Such lapse on the part of a registered taxpayer is unprecedented and amounts to ITC wrongly availed/utilized as contemplated u/s 73 of OGST Act”.

Though there is no reference in the said assessment order with regard to GST ASMT-10, dated 30th March, 2022 and GST ASMT-11, dated 1st June, 2022, such fact is reflected in the instructions dated 12th September, 2025 submitted by the Standing Counsel today during the course of hearing.

Know Practical Aspects of Tax Planning, Click Here

It is trite that no additional reason can sanctify the original order, which is defective. The instruction as placed before this Court depicts as if the authority concerned has considered the reply in ASMT11, dated 1st June, 2022 in connection with ASMT-10, dated 30th March, 2022 and the same was found not satisfactory. Such a fact is not available in the assessment order.

The Court is not satisfied that proper opportunity was not afforded to the petitioner, but an ex parte order was passed under Section 73 of the GST Act, which cannot be held to be sustained in the eye of law. Since it is the case of the petitioner that he has not received Form GST ASMT-10, which prevented him to file proper reply, the assessment order dated 21st February, 2025 passed under Section 73 of the GST Act by opposite party no.2 is set aside and this Court does so.

The Chief Justice Harish Tandon and Justice Murahari Sri Raman disposed of the writ petition with direction to the authority concerned to serve proper documents, which are claimed to have not been served on the petitioner for filing its reply/explanation appropriately within a period of seven days from today. On such supply of documents, the petitioner may file a reply/explanation within a period of two weeks thereafter.

The assessing authority shall proceed with the matter for adjudication. It is directed that the authority concerned shall conclude the entire proceeding by passing appropriate order taking into consideration the explanation/reply of the petitioner within a period of three months from date.

Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates