Facts of the Case

The petitioner, Sarat Chandra Sahoo, filed a writ petition before the Orissa High Court seeking to quash an assessment order dated 02.07.2022 (Annexure-3 series) passed by the Commissioner, CT & GST, Odisha, under Section 63 of the Odisha Goods and Services Tax Act, 2017 (OGST Act). The petitioner contended that he had never been served with any notice prior to the passing of the impugned assessment order, that the authority had not assigned any reasons, and that the order did not contain particulars of the demand raised, thereby denying him an opportunity of hearing.

Issues Involved

  1. Whether an assessment order passed under Section 63 of the OGST Act, without prior notice and without recording reasons, is sustainable in law.
  2. Whether the petitioner is entitled to a fresh opportunity of hearing before the assessment is finalized.

Petitioner's Arguments

  • Was never served with any notice prior to the passing of the assessment order.
  • The impugned order did not assign reasons or contain particulars of the demand raised, depriving him of an opportunity of hearing.

Respondent's Arguments

  • The learned Standing Counsel for the Revenue Department, on perusal of the impugned order, conceded that no reasons had been assigned by the authority and that no opportunity of hearing had been given while passing the order, and that it could not, therefore, be sustained in the eye of law.

Court Order/Findings

  • The petitioner's counsel submitted that the petitioner would not oppose participating afresh in the assessment proceedings if given an opportunity of hearing.
  • In view of the Department's own concession that no reasons were assigned and no opportunity of hearing was afforded, the Court set aside the assessment order passed under Section 63 of the OGST Act and remanded the matter.
  • The petitioner was directed to appear before the Assessing Officer on or before 31.10.2023 and furnish objections, if any, following which the Assessing Officer would proceed with the matter in accordance with law.
  • The writ petition was disposed of accordingly.

Important Clarification

  • An assessment order passed under Section 63 of the CGST/SGST Act without prior notice, without recording reasons, and without affording an opportunity of hearing is liable to be set aside as violative of principles of natural justice, with the matter remanded for a fresh assessment after due notice and hearing.

Sections Involved

  • Section 63, Odisha Goods and Services Tax Act, 2017 — assessment of persons who fail to obtain registration or whose registration has been cancelled; requires notice and opportunity of hearing before assessment.
  • Article 226, Constitution of India, 1950 — writ jurisdiction invoked.

Decision – In Favour of

In favour of the Assessee. The assessment order was set aside for want of notice, reasons and opportunity of hearing, and the matter was remanded for fresh assessment after the petitioner is heard.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Orissa at Cuttack
  • Case No.: W.P.(C) No. 32703 of 2023
  • CNR: Not available in the order
  • Coram: Acting Chief Justice Dr. B.R. Sarangi and Justice Murahari Sri Raman
  • Decision Date: 06.10.2023
  • Disposal Nature: Disposed of (assessment order set aside; remanded for fresh hearing)

Link to Download the Order

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