2025 (1) TMI 779 - HC - GST

Challenge to demand notice issued by the Sales Tax Officer pertaining to financial year 2018-19 issued u/s 74 of Odisha Goods and Services Tax Act, 2017 - Date for personal hearing was not given - violation of principles of natural justice - HELD THAT - Petitioner is relying on directions given in the show cause notice. It was in respect of a demand. Any defect in the show cause notice would cause violation of principles of natural justice. The impugned demand is set aside and quashed - petition disposed off.

Summary

In the case before the Orissa High Court, presided over by Hon'ble Justices Arindam Sinha and M. S. Sahoo, the petitioner challenged a demand notice dated September 29, 2021, issued by the Sales Tax Officer under Section 74 of the Odisha Goods and Services Tax Act, 2017, for the financial year 2018-19. The petitioner, represented by Ms. I. Tripathy, argued that the show cause notice dated March 31, 2021, violated principles of natural justice as it failed to specify a date for personal hearing, only providing a date for filing the show cause. The petitioner was unable to submit a reply due to the pandemic.

Mr. S. Das, representing the revenue, contended that a reminder was issued for filing the reply and that a personal hearing would be considered necessary only if a reply was filed. He cited subsection (4) of Section 75 to support the position that failure to reply implies no defense to the demand.

The court found merit in the petitioner's argument regarding the defect in the show cause notice and the violation of natural justice. Consequently, the court quashed the impugned demand and granted the petitioner two weeks to file a reply. If a reply is filed, the petitioner may request a personal hearing. Failure to file a reply will result in the automatic restoration of the impugned order. The writ petition was disposed of accordingly.