Decide SCN Rectification Before GST Adjudication: Orissa HC

By CA Sandeep Kanoi Goods and Services Tax Judiciary November 6, 2025

TaxGuru Citation: 2025 taxguru.in 10450
Case Name: Aruni Stone Crusher Vs Superintendent Central GST And Central Excise (Orissa High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Orissa High Court

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Aruni Stone Crusher Vs Superintendent Central GST And Central Excise (Orissa High Court)

Summary: The Orissa High Court heard a writ petition filed by Aruni Stone Crusher, challenging intimations dated September 2, 2025, and September 19, 2025, issued by the Superintendent, Central GST and Central Excise, Jajpur Division, instructing the petitioner to appear for a personal hearing regarding a Demand-cum-Show Cause Notice (SCN).

The core of the dispute originated from an SCN dated June 26, 2025, issued by the Assistant Commissioner, CGST & Central Excise, Jajpur Division, raising a demand under Section 74 of the GST Act. This demand pertained to GST on royalty related to permissible limits and the extraction of minerals beyond permissible quantities for tax periods spanning 2018-19 to 2022-23. The petitioner’s counsel contended that on August 26, 2025, an application was filed under Section 161 of the GST Act seeking rectification of the SCN dated June 26, 2025. The petitioner argued that the authority, instead of addressing the rectification application, proceeded to issue notices for a personal hearing concerning the original SCN. The petitioner emphasized that if the rectification application were considered, the demanded amount could be drastically reduced or potentially become nil.

The learned Senior Standing Counsel for the Revenue argued that the authority’s action of issuing intimations for a personal hearing was valid, as all contentions, including those raised in the rectification application, could be considered during the adjudication process. However, the High Court noted that the intimations for the personal hearing did not explicitly reveal that the rectification application would be considered alongside the Demand-cum-Show Cause Notice. Consequently, the High Court deemed it appropriate to direct the Assistant Commissioner to first consider the application for rectification. The Assistant Commissioner, GST & Central Excise, Jajpur Division, was directed to determine the maintainability of the rectification application in terms of Section 161 of the GST Act within a period of two weeks. The court clarified that only after the consideration of the rectification application could the authority proceed further in connection with the Demand-cum-Show Cause Notice dated June 26, 2025. The writ petition was disposed of without expressing an opinion on the merits of the matter.