Iron Cementics India Pvt. Ltd. Vs Assistant Commissioner Central Tax (Orissa High Court)
The Orissa High Court addressed a petition filed by Iron Cementics India Pvt. Ltd., challenging an order in original dated 7th April 2022. The petitioner’s counsel argued that the company became aware of the order only upon receiving notification from their bank, which had received a garnishee order. The petitioner emphasized that they were not given any prior notice during the proceedings that led to the impugned order. Additionally, they presented evidence of having paid the demanded tax through a CBEC challan dated 19th October 2016. The revenue’s counsel, upon reviewing the challan, suggested restoring the proceedings.
The court, after examining the petitioner’s submissions and the presented evidence, decided to set aside and quash the impugned order. The garnishee order dated 27th September 2024 was also invalidated. The court directed the restoration of the proceedings, mandating the petitioner to communicate a certified copy of the court’s order to the Assistant Commissioner of Central Tax by 27th January 2025 and obtain a hearing date. Failure to comply with this directive would result in the automatic reinstatement of the original impugned order. The court’s decision was based on the lack of prior notice to the assessee and the confirmation of tax payment, ensuring procedural fairness and adherence to due process. The writ petition was subsequently disposed of.
