Ex-Parte Order Set Aside if Assessee filed a belated reply and supporting documents before the ex-parte order Opportunity to Present Defense Granted

Summary in Key Points:

Issue: Was the ex-parte order justified, even though the assessee filed a belated reply before the order was passed?
Facts: The assessee received a show cause notice with a reply deadline of August 3, 2023. They failed to file a timely reply but submitted it on November 2, 2023, along with some documents. An ex-parte order was passed.
Decision: The court noted that the assessee filed a belated reply and supporting documents before the ex-parte order was passed. Considering the circumstances, the court exercised its discretion to set aside the order and remand the matter, allowing the assessee an opportunity to present their defense.

Important Note: This decision highlights the court’s inclination to provide taxpayers a fair chance to defend themselves, even if they miss initial deadlines. While acknowledging the delay, the court recognized that the assessee demonstrated an intention to respond by submitting documents and a belated reply before the final order. This ruling emphasizes the importance of considering the facts and circumstances of each case and granting taxpayers a reasonable opportunity to be heard, promoting a just and equitable approach to tax administration.

HIGH COURT OF ORISSA

M.P. Jay Jagannath Transport

State Tax Officer, CT and GST Circle

Arindam Sinha and M.S. Sahoo, JJ.

W.P.(C) No.31137 of 2024

JANUARY 8, 2025

P.K. Jena, Adv. for the Petitioner. S. Mishra, Adv. Standing Counsel for the Respondent.

ORDER

1. Mr. Jena, learned advocate appears on behalf of petitioner and submits, impugned is ex parte order dated 30^th April, 2024 made under section 73 of Odisha Goods and Services Tax Act, 2017. Impugned order was preceded by show cause notice dated 3^rd July, 2023 relevant to tax period April, 2018 to March, 2019. Date of filing reply to the show cause was on 3^rd August, 2023. His client was able to file the reply on 2^nd November, 2023. As his client could not file the reply within time, impugned order was made ex parte. He seeks interference for his client to have opportunity of hearing based on the reply filed.

2. Mr. Mishra, learned advocate, Standing Counsel appears on behalf of revenue and submits, impugned order was duly made. No reply was filed to the notice within time. Petitioner went silent. The authority taking into consideration the audit report, passed the order. No interference is voluntary.

3. It appears, petitioner filed reply to the show cause by GST DRC-06 on 2^nd November, 2023. Impugned order was made thereafter on 30^th April, 2024. It does say that after petitioner was allowed time, he transmitted documents such as GSTR-9 and GSTR-9C but thereafter remained silent over the matter.

4. We have before us a tax payer, who did submit some documents within extended time and thereafter filed reply to the show cause notice, out of time but before making of impugned order. The facts and circumstances cause us to exercise our extraordinary power to interfere as petitioner appears to have exhibited some substance in wanting to present defence.

5. In view of aforesaid impugned order is set aside. Petitioner will communicate certified copy of this order to opposite party no.2 by 24^th January, 2025 and obtain date of personal hearing. In event of omission to communicate as directed, impugned order will stand automatically restored.

6. The writ petition is disposed of.