Aruni Stone Crusher Vs Superintendent Central GST And Central Excise
Date: September 24, 2025
Subject Matter
Department to Decide SCN Rectification Before Adjudication
Summary
The petitioner challenged intimations for a personal hearing issued by the Superintendent of Central GST, arguing they were premature. The petitioner was served a Demand-cum-Show Cause Notice (SCN) dated June 26, 2025, under Section 74 of the GST Act regarding unpaid GST on mineral royalty and excess mineral extraction for the periods 2018-19 to 2022-23.
Crucially, the petitioner filed a separate Application for Rectification of the SCN under Section 161 of the GST Act on August 26, 2025. The petitioner contended that if the rectification application were considered first, the massive demand in the SCN would be drastically reduced or eliminated. The subsequent hearing intimations failed to confirm whether the authority would consider the rectification application.
The Revenue argued that the authority would consider all contentions, including the rectification, during the main SCN proceedings.
The High Court disposed of the writ petition by directing the Assistant Commissioner to prioritize the decision on the rectification application before proceeding with the SCN.
Rectification Priority: The Court found it prudent to direct the Assistant Commissioner to first consider the application for rectification filed under Section 161 of the GST Act. The hearing intimations did not provide clarity that the rectification would be addressed.
Maintainability Check: The Assistant Commissioner must first determine whether the application for rectification of the SCN is maintainable under the language of Section 161.
Timeline: The Assistant Commissioner is directed to consider the rectification application within a period of two weeks from the date the petitioner submits a certified copy of the order.
Subsequent Proceedings: It is clarified that the authority may only proceed further in connection with the Demand-cum-Show Cause Notice dated 26.06.2025 if the occasion so arises (i.e., after deciding the rectification application).
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. By way of filing this writ petition, the petitioner being aggrieved by intimations dated 02.09.2025 and 19.09.2025 issued by the Superintendent, Central GST and Central Excise Jajpur Division, Jajpur Road instructing to appear before the Assistant Commissioner, Jajpur Division on the date specified therein through virtual mode affording personal hearing in connection Demand-cum-Show Cause Notice.
2. Mr. Jagabandhu Sahoo, learned Senior Counsel along with Ms. Kajal Sahoo, learned counsel for the petitioner submitted that a notice dated 21.05.2025 was served with a request to pay GST under Section 74 of the Central Goods and Services Tax Act, 2017/the Odisha Goods and Services Tax Act, 2017 (Collectively, “GST Act”) on royalty relating to permissible limit and extraction of mineral beyond the permissible quantity pertaining to tax periods from 2018-19 to 2022-23. However, against Demand-cum-Show Cause Notice dated 26.06.2025 issued by the Assistant Commissioner, CGST & Central Excise, Jajpur Division, Jajpur Road indicating deposit of demand raised under Section 74 of the GST Act, an application under Section 161 of the GST Act was filed before the authority concerned on 26.08.2025 for rectification of Demand-cum-Show Cause Notice dated 26.06.2025. It is vehemently contended by learned Senior Counsel that the authority concerned instead of considering the application under Section 161 in its right earnest the intimations dated 02.09.2025 and 19.09.2025 have been issued to the petitioner insisting for personal hearing before the Assistant Commissioner, GST & Central Excise, Jajpur Division in connection with the Show Cause Notice C.No.GEXCOM/AE/INV/GST/599/2024-CGST-RANGE-5-DIV-JJPR-COMMRTE-BBSR/202, dated 26.06.2025. It is submitted that if the application for rectification is considered, the amount of demand as reflected in the Demand-cum-Show Cause Notice would drastically be reduced or even come down to nil.
3. Sri Bismay Anand Prusty, learned Senior Standing Counsel submitted that the document enclosed does not reveal that the petitioner has responded to the notice dated 21.05.2025 (Annexure-1). On receiving Demand-cum-Show Cause Notice dated 26.06.2025, it appears that the petitioner has filed application for rectification of said Notice. Since the authority concerned has issued intimation for personal hearing in connection with the Demand-cum-Show Cause Notice, no fault can be attributed to the authority as in course of proceeding with the matter, all the contentions raised in the application for rectification can be considered by the authority.
4. Heard learned counsel for the parties.
5. Perused the record. It is apparent from record vide Annexure-3 that Office of the Assistant Commissioner, CGST and Central Excise, Jajpur Division, Jajpur Road received the application for rectification of Demand-cum-Show Cause Notice dated 26.06.2025 and the intimations for personal hearing do not reveal that the authority concerned would consider the said application along with Demand-cum-Show Cause Notice.
6. In such view of the matter, it is considered prudent to direct the Assistant Commissioner, GST & Central Excise, Jajpur Division to consider whether application for rectification of Demand-cum-Show Cause Notice, as stated to have been filed by the petitioner, is maintainable in terms of Section 161 of the GST Act and in the event, such a petition is found to be entertained in terms of language employed in Section 161, the grievance of the petitioner as mentioned in the said application would be considered on its own merits.
7. Considering submissions, it is directed that the Assistant Commissioner GST & Central Excise, Jajpur Division shall do well to consider the application for rectification within a period of two weeks from the date of receipt of certified copy/down loaded copy of this order to be submitted by the petitioner.
8. It is made clear that if occasion so arises after consideration of said application for rectification, said authority may proceed further in connection with Demand-cum-Show Cause Notice dated 26.06.2025.
9. Without expressing any opinion on the merits of the matter, the writ petition is disposed of with the aforesaid observations and directions. Pending Interlocutory Application(s), if any, shall stand disposed of.