2025 (1) TMI 209 - HC - GST

Challenge to order u/s 73 in Odisha Goods and Services Tax Act, 2017 - HELD THAT - Section 61, by sub-section (2) requires consideration of explanation furnished. Sub-section (3) says, in case no satisfactory explanation is furnished, the proper officer may initiate appropriate action under, inter alia, section 73. Initiation of the proceeding under section 73 was clearly without jurisdiction. Impugned order is set aside and quashed. Petitioner s said reply dated 29th July, 2021 is to be dealt with under section 61 and thereafter revenue can proceed. Petition disposed off.

Summary

In the High Court of Orissa, the case involved a challenge to an order dated April 9, 2024, made under section 73 of the Odisha Goods and Services Tax Act, 2017. The petitioner, represented by Mrs. K. Roy Choudhury, argued that the order was issued without considering a reply dated July 29, 2021, which was furnished in response to a communication under section 61. This omission, the petitioner contended, made the proceedings under section 73 invalid.

Mr. Sunil Mishra, representing the revenue, argued that although the section 73 proceedings overlooked the petitioner's reply, the petitioner was given adequate opportunity to be heard, and thus, no prejudice was suffered.

The court noted that section 61 requires consideration of any explanation furnished, and if unsatisfactory, allows for initiation of proceedings under section 73. However, Mr. Mishra could not demonstrate that the reply was considered in the impugned notice and order. The court found the initiation of proceedings under section 73 to be without jurisdiction, set aside the order, and directed that the petitioner's reply be dealt with under section 61 before any further action. The writ petition was disposed of accordingly.