Facts of the Case

The petitioner, Ashis Ranjan Sahu, completed works of "strengthening of existing infrastructure" under RASM in Doogaon and Balangir blocks before 21.05.2017, i.e., prior to the introduction of the GST Act, but received payments for the work during the tax periods July 2017 to March 2018. His GST registration was shown cancelled with effect from 01.07.2017. Treating him as an unregistered taxpayer, the CT & GST Officer, Angul Circle issued a show cause notice dated 04.12.2021 under Section 63 of the GST Act and, upon his non-appearance, passed an ex-parte adjudication order dated 03.02.2022 for the tax periods in question.

Issues Involved

  1. Whether service of the show cause notice on an email address furnished during the pre-GST VAT regime, which had since become dormant, amounted to valid service on the petitioner.
  2. Whether the resultant ex-parte order under Section 63 of the GST Act, passed without the petitioner's participation, could be sustained.

Petitioner's Arguments

  • Since his registration was cancelled with effect from 01.07.2017, the petitioner ceased to be a registered taxpayer thereafter, and the email address on which the show cause notice was claimed to be served had remained dormant and non-operational after that date.
  • Alternative remedy could not bar the writ petition since the notice never actually reached him, depriving him of any hearing.

Respondent's Arguments

  • Since the petitioner received payment for the works during the relevant tax periods, he could not avoid his tax liability; the show cause notice dated 04.12.2021 was validly served on the email address he had furnished to the Registering Authority during the VAT regime.

Court Order / Findings

  • The Division Bench found it undisputed that the petitioner's registration stood cancelled with effect from 01.07.2017 and that he was treated as an unregistered taxpayer, and that the show cause notice was claimed to have been served only via the pre-GST email address.
  • The Court held it incumbent on the CT and GST Officer to have verified whether the show cause notice had actually reached the addressee, and found force in the submission that the petitioner had been deprived of a hearing and an opportunity to produce material before the Adjudicating Authority.
  • The impugned order dated 03.02.2022 was set aside on the ground that adjudication had proceeded ex-parte, with the petitioner directed to appear before the authority to file his explanation/reply, and the adjudication to be completed within three months of his appearance.

Important Clarification

  • Where a taxpayer's GST registration has been cancelled and he has become effectively unregistered, service of a subsequent show cause notice on an email address furnished years earlier under a pre-GST regime — which may have gone dormant — does not automatically amount to effective service; officers must verify actual receipt before proceeding ex-parte.

Sections Involved

  • Section 63, Central Goods and Services Tax Act, 2017 / Odisha GST Act, 2017 — assessment of unregistered persons.

Decision – In Favour of

In favour of the Assessee — the ex-parte order was set aside and the petitioner granted a fresh opportunity to contest the show cause notice.

Case Details

Court: High Court of Orissa at Cuttack
Case No.: W.P.(C) No.9871 of 2025
Coram: Hon'ble the Chief Justice and Hon'ble Mr. Justice Murahari Sri Raman
Date of Order: 04.12.2025

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.