Shrushti Infotech Private Limited Vs State Tax Officer
Date: June 23, 2024
Subject Matter
Order quashed as the taxpayer was not given the opportunity of personal hearing
Summary
The Petitioner filed a writ petition to challenge the orders issued on November 2, 2023, by the State Tax Officer, Bhubaneswar-II Circle, under Section 74 of the OGST Act. The crux of the challenge was that the Petitioner was denied a personal hearing before the orders were made, which is a procedural right. Counsel for the Petitioner argued that this denial of opportunity is contrary to the principles of natural justice and referenced a previous judgment from the same court (Khani Khyatigrasta Gramya Committee vs. The Commissioner of Commercial Tax & GST) that supports the necessity of a hearing. In response, the Revenue's counsel conceded that the lack of an opportunity for a hearing necessitated remanding the case for a fresh consideration. Ultimately, the court determined that the orders passed without giving the Petitioner a hearing were unsustainable in law and quashed those orders. The matter was remitted back to the State Tax Officer to rehear the case, ensuring that the Petitioner receives the opportunity to present their case in line with legal provisions and prior judicial directions. The writ petition was thus disposed of with appropriate directives for rehearing.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
This matter is taken up by hybrid mode.
2. Heard Mr. R.P. Kar, learned Senior Counsel along with Mr. N. Ray, learned counsel appearing for the Petitioner and Mr. S. Mishra, learned Standing Counsel appearing for the Revenue.
3. The Petitioner has filed this writ petition seeking to quash the orders dated 02.11.2023 passed by Opposite Party No.1-State Tax Officer, Bhubaneswar-II Circle, Bhubaneswar under Section 74 of the OGST Act without granting any opportunity of personal hearing to the Petitioner and an order has been passed.
4. Mr. R.P. Kar, learned Senior Counsel along with Mr. A.N. Ray, learned counsel appearing for the Petitioner vehemently contended that Opposite Party No.1-State Tax Officer, Bhubaneswar-II Circle, Bhubaneswar has passed the orders dated 02.11.2023 under Section 74 of the OGST Act without giving any opportunity of hearing to the Petitioner. Therefore, the Petitioner approached this Court by way of filing this writ petition. He is further contended that the case of the Petitioner is fully covered by the judgment of this Court in Khani Khyatigrasta Gramya Committee v. The Commissioner of Commercial Tax & GST and Another (in W.P.(C) No.27946 of 2023, disposed of on 09.11.2023).
5. Mr. S. Mishra, learned Standing Counsel appearing for the Revenue contended that since the Petitioner has not been given opportunity of hearing, the matter has to be remanded to the authority concerned so that opportunity of hearing can be given to the Petitioner in consonance with the provision of law.
6. Considering the contentions raised by the learned counsel appearing for the parties, but, however without expressing any opinion on the merits of the case, since the State Tax officer while passing the orders dated 02.11.2023 has not been given opportunity of hearing to the Petitioner, the said orders cannot be sustained in the eye of law. Accordingly, the orders dated 02.11.2023 are liable to be quashed and are hereby quashed. Therefore, this Court remits back to the very same authority to rehear the matter afresh in accordance with law after giving opportunity of hearing to the Petitioner taking into consideration the ratio decided by this Court in Khani Khyatigrasta Gramya Committee (supra).
7. With the above observation, the writ petition stands disposed of.