Case Law Details
OLA Fleet Technologies Private LimitedVs State of Odisha and another (Orissa High Court)
The matter concerned a challenge to an Assessment Order dated February 21, 2025, passed by the Assistant Commissioner of State Tax, Bhubaneswar-II Circle, under Section 73 of the Central/Odisha Goods and Services Tax Act, 2017 (GST Act), for the tax periods from April 2020 to March 2021. The petitioner, OLA Fleet Technologies Private Limited, contested the order, arguing it was passed ex parte without proper service of statutory notices, leading to a violation of the principles of natural justice.
Petitioner’s Submissions
The petitioner asserted that it was never served with the notice in Form GST DRC-01 (Show Cause Notice) and that intimation(s)/notices were neither uploaded on the GST Portal nor communicated by electronic mail. Counsel for the petitioner emphasized that a screenshot of the GST Portal’s “intimations-notices” menu showed “no records found” (Annexure-4), indicating a “flagrant violation of principles of natural justice.”
While the petitioner acknowledged filing a response in Form GST ASMT-11 on June 1, 2022, to an earlier scrutiny notice in Form GST ASMT-10 dated March 30, 2022, they maintained that they received no communication thereafter. The petitioner learned about the ex parte demand order for the financial year 2020-21 only upon accessing the GST Portal. The petitioner further argued that the non-issue of the summary of notices/orders electronically violated the explicit provisions of the GST Rules, referencing Instruction No. 04/2023-GST dated November 23, 2023. Consequently, the petitioner prayed for the assessment order to be set aside and for an opportunity to present its case for fresh adjudication.
Department’s Submissions
The Department (State of Odisha) submitted instructions which claimed a different sequence of events. They stated that after the taxpayer’s unsatisfactory reply in ASMT-11 (in response to ASMT-10 dated March 30, 2022), a Show Cause Notice in Form GST DRC-01 was issued on October 30, 2024, fixing the reply date as November 30, 2024. The Department asserted that the taxpayer neither filed any reply nor appeared. They further claimed two reminders were sent on January 18, 2025, and February 4, 2025, as part of the principles of natural justice. Following the non-appearance, the Assessment Order under Section 73(9) was passed on February 21, 2025.
However, the Standing Counsel for the Department conceded that there were “certain inadvertent errors” and that the instructions were “silent” on the petitioner’s specific averment that the ASMT-10, SCN, and personal hearing notices were not uploaded in the respective tabs on the GST Portal, as evidenced by the screenshot showing “no records found.” The instructions also revealed that while the assessment order mentioned an earlier ASMT-10 from July 20, 2021, and its non-compliance, the Department’s later instruction acknowledged and referred to the ASMT-10/ASMT-11 of March/June 2022, which was not mentioned in the assessment order itself.
Court’s Rationale and Judicial Precedent
The Orissa High Court, upon considering the submissions and the evidence, gave significant weight to the screenshot (Annexure-4) provided by the petitioner, which “apparently shows ‘no records found’” against intimations/notices.
The Court noted the discrepancy between the Assessment Order and the Department’s instruction:
1. The Assessment Order relied on an earlier scrutiny notice (ASMT-10 dated July 20, 2021) and the taxpayer’s failure to respond to it.
2. The Department’s instruction, however, detailed the issuance of a later scrutiny notice (ASMT-10 dated March 30, 2022), the petitioner’s reply (ASMT-11), and the finding that the reply was unsatisfactory—a fact “not available in the assessment order.”
The Court cited the trite principle that “no additional reason can sanctify the original order, which is defective.” The Assessment Order was defective as it did not reflect the consideration of the petitioner’s reply in ASMT-11, which the Department’s instruction later admitted to having received and considered unsatisfactory. Crucially, the evidence strongly suggested that the mandatory statutory documents, including the Show Cause Notice, were not properly served on the petitioner through the prescribed electronic means.
Holding and Directions
The High Court held that it was “not satisfied that proper opportunity was not afforded to the petitioner, but an ex parte order was passed under Section 73 of the GST Act, which cannot be held to be sustained in the eye of law.”
The Court, therefore, made the following directions:
1. The Assessment Order dated February 21, 2025, passed under Section 73 of the GST Act, was set aside.
2. The concerned authority was directed to serve proper documents, which the petitioner claimed were unserved, within seven days.
3. The petitioner was granted a period of two weeks from the date of document supply to file its reply/explanation.
4. The assessing authority was directed to conclude the entire proceeding by passing an appropriate order, taking into consideration the petitioner’s explanation, within a period of three months.
5. The petitioner was directed to cooperate with the authority and participate in the proceeding.
6. The writ petition was thus disposed of with these observations and directions, emphasizing the necessity of adherence to the principles of natural justice and proper statutory procedure in GST assessment proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. Assailed in the present writ petition is the Assessment order dated 21st February, 2025 passed under Section 73 of the Central Goods and Services Tax Act, 2017/the Odisha Goods and Services Tax Act, 2017 (collectively, “GST Act”) by the Assistant Commissioner of State Tax, Bhubaneswar-II Circle, Bhubaneswar-opposite party no.2 for the tax periods from April, 2020 to March, 2021.
1.1. The petitioner asserted that it was never served with notice in Form GST DRC-01. It is affirmed that the notices/intimation(s) were not uploaded on the GST Portal much less communicated by electronic mail to the petitioner.
2. Learned counsel appearing for the petitioner submitted that the input tax credit has been correctly disclosed in the monthly returns filed in Form GSTR-01 and Form GSTR-3B, yet the Department unilaterally disallowed the same without even affording opportunity of personal hearing.
2.1 He has taken this Court to a document at Annexure-4 of the writ petition, which reflects “no records found” against the menu— “intimations-notices”. Hence with vehemence the learned counsel submitted that there is flagrant violation of principles of natural justice inasmuch as the webportal itself shows that no notice or intimation was uploaded/attached.
2.2 An additional affidavit dated 15th September, 2025 has come to be filed by the petitioner making statement therein that response was filed in Form GST ASMT-11, dated 1st June, 2022 along with written statement to the notice in Form GST ASMT-10, dated 30th March, 2022. It is further submitted by the learned counsel for the petitioner that the petitioner has not received any communication pursuant to scrutiny notice dated 30th March, 2022 as is evident from the screenshot of the GST Portal as has already been mentioned above. However, on accessing the GST Portal, it has come to its knowledge that the demand order for the Financial Year 2020-21 has been passed ex parte and was uploaded in the said portal.
2.3 Referring to instruction No.04/2023-GST, dated 23rd November, 2023 issued by the Ministry of Finance Department of Revenue, Central Board of Indirect Taxes and Customs GST Policy, it is submitted that non-issue of summary of notices/orders electronically in the portal is clear violation of explicit provisions of GST Rules.
2.4 It is, therefore, fervently prayed to allow this writ petition by granting opportunity to present the case on behalf of the petitioner before the assessing authority for fresh adjudication.
3. Having sought for obtaining instructions, learned Standing Counsel appearing for the Department-opposite parties furnished instructions received from the Joint Commissioner of CT & GST, Bhubaneswar-II Circle, Bhubaneswar. The said instruction contained the following:-
“***Another ASMT-10 issued on dtd-30/03/2022 vide Reference No-ZD210322018954Q for the F.Y.2020-21. The taxpayer has submitted his reply in ASMT-11 vide reference No-ZD2103220138954Q on dt 01/06/2022. However, the reply furnished by the tax payer is not found to be satisfactory and accordingly show cause notice u/2 73 of the OGST Act in Form GST DRC-01 vide Ref. No.ZD211024027876M/30/10/2024 was issued to the taxpayer fixing the date to 30/11/2024 for submission of reply in Form DRC-06. In this connection, the taxpayer has neither filed any reply nor complied the liability in any manner. Subsequently, two reminders issued to the taxpayer on dtd.18.01.2025 and 04.02.2025 respectively by fixing the date of reply on dtd.31.01.2025 and 12.02.2025 respectively as a principle of natural justice. In spite of getting three opportunities for personal appearance, the taxpayer never appeared before the adjudicating authority to discuss the irregularities nor submitted any relevant documents. Hence the Assessment Order U/s-73(9) is complete basing on the information available at this end, on dt.21/02/2025 by passing demand order in Form GST DRC 07 vide Ref. No.ZD2102250243524/ dtd.21/02/2025.
However, while issuing show cause notice in DRC-01 & passing the order in DRC-07 inadvertently the reference No-ZA210721000954U dtd-02/07/2021 was entered in the annexure to DRC-07.”
3.1 Though learned Standing Counsel vehemently objected to show indulgence in this matter, he conceded on the basis of instruction that certain inadvertent errors have crept in and that the instruction is silent with regard to the contention of the petitioner with respect to the following averment at paragraph-12 of the writ petition:
“12. That in this regard, in the intimation tab, Form GST- ASMT-10 has not been uploaded by the State tax authorities. Further, in the notices tab neither the SCN nor personal hearing notice has been uploaded by the State tax authorities, which makes it evident that intimation notice, SCN and personal hearing notices as alleged in the Impugned Order were never served on the Petitioner.”
4. Considered submissions diligently. On perusal of Annexure-4, it seems intimations/notices have not been delivered at the end of petitioner as the screenshot apparently shows “no records found”.
4.1 On bare reading of assessment order dated 21st February, 2025 it is revealed that “the instant taxpayer has been intimated regarding the excess claim of input tax credit in GST ASMT-10 u/s.61 of OGST Act vide Reference No.ZA210721000954U dated 20/07/2021, wherein the tax payer was directed to reply in GST ASMT-11 by 02/08/2021. In this connection, the taxpayer has neither replied nor produced any supporting document against the findings communicated vide ASMT- Such lapse on the part of a registered taxpayer is unprecedented and amounts to ITC wrongly availed/utilized as contemplated u/s 73 of OGST Act”. Though there is no reference in the said assessment order with regard to GST ASMT-10, dated 30th March, 2022 and GST ASMT-11, dated 1st June, 2022, such fact is reflected in the instructions dated 12th September, 2025 submitted by the learned Standing Counsel today during the course of hearing.
4.2 It is trite that no additional reason can sanctify the original order, which is defective. The instruction as placed before this Court depicts as if the authority concerned has considered the reply in ASMT- 11, dated 1st June, 2022 in connection with ASMT-10, dated 30th March, 2022 and the same was found not Such a fact is not available in the assessment order.
5. Under the aforesaid premises, this Court is not satisfied that proper opportunity was not afforded to the petitioner, but an ex parte order was passed under Section 73 of the GST Act, which cannot be held to be sustained in the eye of law.
5.1 Since it is the case of the petitioner that it has not received in Form GST ASMT-10, which prevented him to file proper reply, the assessment order dated 21st February, 2025 passed under Section 73 of the GST Act by opposite party no.2 is set aside and this Court does so.
5.2 This Court, therefore, disposes of the writ petition with direction to the authority concerned to serve proper documents, which are claimed to have not been served on the petitioner for filing its reply/explanation appropriately within a period of seven days from today. On such supply of documents, the petitioner may file reply/explanation within a period of two weeks thereafter. The assessing authority shall proceed with the matter for adjudication. It is directed the authority concerned shall concluded the entire proceeding by passing appropriate order taking into consideration the explanation/reply of the petitioner within a period of three months from date.
5.3 Needless to say, that the petitioner shall cooperate with the authority concerned and participate in the proceeding without seeking for unnecessary adjournments.
6. With the aforesaid observation and direction, this writ petition stands disposed of. As a result of the disposal of the writ petition, all pending Interlocutory Applications, if any, shall stand disposed of
