Sarat Shradha Infrastructure Pvt. Ltd. Vs Chief Commissioner of CT and GST (Orissa High Court)
Orissa High Court, in Sarat Shradha Infrastructure Pvt. Ltd. Vs Chief Commissioner of CT and GST, invalidated a GST demand notice issued under Section 74 of the Odisha Goods and Services Tax Act, 2017, for the financial year 2018-19. The demand notice dated February 17, 2021, failed to specify a date for a personal hearing, violating principles of natural justice. The petitioner highlighted this omission, arguing that the lack of a hearing date denied them the opportunity to present a defense. Additionally, the pandemic prevented the submission of a reply to the show-cause notice.
The Revenue defended the notice, asserting that a reply from the petitioner might have necessitated a hearing. However, the court acknowledged the defect in the show-cause notice, ruling that the omission of a hearing date invalidated the demand. Consequently, the court quashed the demand notice and granted the petitioner two weeks to file a reply, with the option to request a personal hearing. If no reply is filed, the quashed demand order will automatically be reinstated. This judgment underscores the necessity of adhering to procedural fairness in GST proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
