Janardan Panda Vs Commissioner (Orissa High Court)
GST Orders Set Aside Because Personal Hearing Was Not Granted Despite Specific Request; Natural Justice Violated Because GST Authority Mechanically Passed Demand Order; Rectification Order Unsustainable Because It Was Passed Without Opportunity of Hearing.
In this writ petition, the petitioner challenged an Order-in-Original dated 26 December 2025 passed under Section 73 of the Central Goods and Services Tax Act, 2017 and the Odisha Goods and Services Tax Act, 2017, along with a rectification order dated 6 January 2026 passed under Section 161 of the GST Act. By these orders, the Assistant Commissioner of State Tax, Kalahandi Circle, Bhawanipatna, raised a demand of tax, interest, and penalty amounting to Rs. 4,19,278.
The petitioner contended that a show-cause notice in Form GST DRC-01 dated 19 August 2025 had been issued alleging non-payment of tax on royalty, DMF, EMF, dead rent, and surface rent, which were treated as taxable supplies under the reverse charge mechanism. The petitioner submitted a reply on 17 September 2025 and expressly opted for a personal hearing. In the reply, the petitioner asserted that no taxable event had occurred during the relevant period because mining operations had not commenced and, therefore, no tax liability could arise.
