Kalinga Trader Vs Joint Commissioner (Orissa High Court)
The Orissa High Court heard a writ petition challenging an Order-in-Original dated 2 February 2026 passed by the Joint Commissioner, GST & Central Excise, Bhubaneswar Commissionerate, confirming demand relating to excess availment and utilization of inadmissible Input Tax Credit, short paid or unpaid tax, interest under Sections 50(1) and 50(3) of the CGST/OGST Act, 2017, and penalties under Sections 74 and 122(3) of the Act. The petitioner contended that the order was passed in violation of principles of natural justice because the notice fixing the hearing date was not received before the hearing and the proceeding was concluded in the petitioner’s absence.
The Court had earlier directed the departmental counsel to verify whether the notice had been duly served before the hearing date. Upon instructions, the department informed the Court that although the notice had been sent, postal records showed that it was received by the petitioner after the date fixed for hearing. Based on this fact, the Court concluded that the petitioner had not been served with the notice in time and therefore did not receive an adequate opportunity to defend the case.
The Court observed that principles of natural justice are integral to adjudicatory proceedings and that a person should not be condemned without adequate opportunity of hearing. It further noted that lack of opportunity to produce relevant documents could cause serious prejudice to the assessee. Holding that the impugned order had been passed without affording adequate opportunity, the Court quashed and set aside the Order-in-Original dated 2 February 2026 and remanded the matter to the adjudicating authority for fresh decision after granting adequate hearing to the petitioner.
