Reasonable opportunity of hearing required before ex parte tax stay orders; proceeding restored for fresh consideration.

An ex parte order on a stay application under Section 17(7) of the Odisha Entry Tax Act, 1999 was set aside because the petitioner was not afforded a reasonable opportunity of hearing. The High Court noted that the petitioner had participated on earlier dates and that the absence on the hearing date was explained by short notice and counsel's unavailability. Without examining the merits of the stay request or the underlying tax liability, the Court restored the revision case to the Commissioner of Sales Tax for fresh hearing and disposal in accordance with law.

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Issues: Whether the ex parte order passed on the stay application under Section 17(7) of the Odisha Entry Tax Act, 1999 was liable to be set aside for want of reasonable opportunity and the matter restored for fresh consideration.

Analysis: The writ petition was entertained under Articles 226 and 227 of the Constitution of India. The record showed that the petitioner had been pursuing the proceeding and had appeared on earlier dates, while the non-appearance on the date of hearing was explained as being due to short notice and the unavailability of counsel. The Court accepted that the petitioner had not been afforded a fair opportunity before the Commissioner and considered that, without examining the merits of the stay request or the tax liability, the interest of justice required restoration of the proceeding to the authority.

Conclusion: The ex parte order dated 5 April 2022 was set aside and the revision case was restored to the Commissioner of Sales Tax for fresh hearing and disposal in accordance with law.

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