Arkitechno Consultants (India) Pvt. Ltd. Vs Union of India and others (Orissa High Court)
The Orissa High Court, in Arkitechno Consultants (India) Pvt. Ltd. vs. Union of India, set aside a GST adjudication order dated March 6, 2024, on the grounds that the assessee’s reply was not considered. The petitioner had received a notice under Form GST DRC-01 on October 18, 2023, and submitted a response, along with personal representation during the hearing. However, the adjudication order lacked any reasoning for rejecting the assessee’s submissions, effectively making it an order passed without due consideration. The petitioner argued that this procedural lapse hindered its ability to file returns and sought restoration of the case for proper adjudication.
The court observed that the absence of a response to the petitioner’s contentions led to an inference in favor of the petitioner. Consequently, it quashed the adjudication order and granted the petitioner another opportunity to present its case. The petitioner was directed to communicate the order to the relevant GST authority by January 6, 2025, to secure a fresh hearing. Failure to do so would result in the restoration of the quashed order. Additionally, any recovery actions based on the original order were put on hold until the matter was reconsidered. The decision highlights the necessity of reasoned orders in tax adjudication to ensure fairness and procedural compliance.
