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Impugned order for recovery of tax amount and penalty set aside by Orissa High Court

Impugned order for recovery of tax amount and penalty set aside by Orissa High Court

High Court of Orissa passed a judgement on 09th January, 2020 in the case of Serajuddin and Co. (Petitioner) Vs. Union of India stating that no order for recovery of tax amount can be passed in violation of the statutory requirement of law. The case is described as under: Facts of the Case 

  • The petitioner was issued a Show cause notice (SCN) on 04th November 2019 for non-payment of tax for quarter 4 of FY 2018-19 with conditions that reply should be filed till 04th December 2019 and if petitioner wants personal hearing then same should be intimated in writing.
  • The petitioner prayed against SCN for time of four weeks to file reply and intimated for personal hearing.
  • Without responding to prayers of petitioner impugned orders were passed by State Tax Officer.


  • The advocate on behalf of petitioner mentioned sub-section 5 of Section 75 of Odisha Goods and Services Act (OGST Act) which states that if sufficient cause is shown for grant of time, the proper officer should grant time and in this case petitioner had shown sufficient cause notice.
  • Considering the above facts, court agreed that impugned orders have been passed without giving opportunity to petitioner. Therefore there was violation of statutory requirements and it impaired the entire decision-making process.

Judgment/Ruling High Court after considering the above facts and observations passed the following ruling:

  • The impugned orders passed by the State Tax Officer were set aside and the matter was remanded back to State Tax Officer, CT & GST Circle, Barbil and ordered that matter should be proceeded strictly in accordance with law.



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