GST Update

 Desk of CA. Praveen Sharma – 946 Series (CAPS) 

Orissa High Court in the case of Aruni Stone Crusher, Dhenkanal

The Orissa High Court recently passed an important order in a GST matter involving Aruni Stone Crusher, Dhenkanal.

The case began when the petitioner received a Demand-cum-Show Cause Notice dated 26.06.2025 for the tax periods 2018-19 to 2022-23. The petitioner filed an application for rectification, but it was rejected. Thereafter, the petitioner approached the High Court, which directed the authorities to reconsider the matter.

However, instead of proceeding with the original notice, the Proper Officer issued a fresh Demand-cum-Show Cause Notice in Form DRC-01 covering multiple financial years. The petitioner again challenged this action before the High Court.

A personal hearing was fixed on 18.12.2025. On that day, the petitioner informed the department that a writ petition was already pending against the fresh notice. Despite this, the authority passed an Order-in-Original on 19.12.2025, citing limitation concerns.

The petitioner argued that the order was passed in haste without granting proper opportunity of hearing. It was also submitted that limitation involved both legal and factual issues requiring proper examination.

The department argued that the petitioner had an alternative remedy of appeal and that all legal procedures had been followed.

The High Court observed that the authority acted with undue haste despite knowing that a writ petition was pending. The Court held that such action violated the principles of natural justice and amounted to arbitrary exercise of power.

Accordingly, the Court set aside the Order-in-Original dated 19.12.2025. The petitioner was directed to file a reply within seven days, and the authority was instructed to pass a fresh order within fifteen days after granting proper personal hearing.

The writ petition was disposed of with these directions.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS