Janardan Panda Vs Commissioner (Orissa High Court)
The Orissa High Court examined a challenge to an Order-in-Original dated 26 December 2025 passed under Section 73 of the Central Goods and Services Tax Act, 2017 and Odisha Goods and Services Tax Act, 2017, along with a rectification order dated 6 January 2026 passed under Section 161 of the GST Act. Through these orders, a tax, interest, and penalty demand of Rs.57,30,708/- was raised against the petitioner in relation to GST liability on royalty, DMF, EMF, dead rent, and surface rent under the reverse charge mechanism for the period April 2021 to March 2022.
The petitioner argued that a show-cause notice in Form GST DRC-01 had been issued on 18 August 2025 alleging non-payment of GST on the aforesaid components. In response, the petitioner filed a reply on 17 September 2025 and specifically opted for personal hearing. The petitioner contended that no taxable event had occurred during the relevant period because mining operations had not commenced.
However, the adjudicating authority, in paragraph 10 of the Order-in-Original, recorded that the petitioner had neither replied to the show-cause notice nor appeared for personal hearing. The petitioner further submitted that the authority later passed a rectification order under Section 161 suo motu on 6 January 2026 without granting any hearing. It was argued that both orders violated principles of natural justice.
