Shree Jagannath Traders Vs Chief Commissioner GST & Central Excise (Orissa High Court)
Orissa High Court held that disallowance of input tax credit under GST without granting proper opportunity to substantiate the claim is not justified. Accordingly, ex-parte order passed is liable to be set aside and matter remanded back.
Facts- The Petitioner-Wholesaler in Kerosene Oil under the PDS purchases and sells the said commodity at the price fixed by the Indian Oil Corporation Limited-OMC and the Government respectively and, accordingly, it collects Goods and Service Tax (GST) on outward supply of Kerosene oil and avails the benefits of input tax credit as per the price fixed by the Government on sale/supply. The petitioner asserts that having never been served with Order-in-Original dated 28.08.2024, on getting a phone call from an Official of GST and Central Excise, Cuttack requesting him to discharge liability by making payment of tax and penalty as demanded by the said assessment order under Section 73 of the CGST Act, it could come to his knowledge that huge demand comprising tax, interest and penalty has been raised against him by way of an ex parte order. Questioning the same, this writ petition has been filed.
Conclusion- Held that diligent scrutiny of materials available on record indicates that the petitioner did not have proper opportunity to substantiate his claim made in the return vis-à-vis books of accounts. Therefore, this Court is of the considered view that the petitioner is entitled to one opportunity before the Assessing Authority. In such view of the matter, the impugned ex parte assessment order dated 28.08.2024 framed under Section 73 of the GST Act by the Assistant Commissioner, GST & Central Excise, Cuttack-I Division, Cuttack is hereby set aside. In order to avail the opportunity, as discussed above, the petitioner is directed to appear before the said Authority within four weeks from the date of receipt of certified copy of this order. On the appearance of the petitioner, the Assessing Authority may take up the matter forthwith or specify a date convenient to both the petitioner/his representative and the Authority concerned. The Authority shall proceed with the matter in accordance with law.
