Khani Khyatigrasta Gramya Committee Vs Commissioner of Commercial Tax & GST and another (Orissa High Court)
In a significant ruling, the Orissa High Court addressed the legality of an ex parte order under the Central Goods and Services Tax Act, 2017 (CGST Act) and Odisha Goods and Services Tax Act, 2017 (OGST Act). The case, Khani Khyatigrasta Gramya Committee vs. Commissioner of Commercial Tax & GST, challenged the validity of a tax demand order issued to the petitioner without a proper hearing. The court’s decision highlights the importance of adhering to principles of natural justice in tax proceedings.
The petitioner, Khani Khyatigrasta Gramya Committee, a registered taxpayer under the CGST/OGST Act, contested an order dated January 31, 2023, demanding tax, interest, and penalty. The order was issued under Section 73 of the CGST/OGST Act, directing the petitioner to pay the due amount within three months or face recovery proceedings under Section 79.
The petitioner, involved in transporting iron ore to Rungta Mines Limited, had regularly filed GST returns and complied with statutory requirements. However, discrepancies were noticed in the tax filings for the period from July 2017 to March 2018. A notice under Section 61 of the Act was issued on October 20, 2022, alleging understatement of tax liabilities.
