Right to fair hearing requires fresh adjudication where territorial nexus, exemption, limitation and double taxation defences were not considered.

Order and rectification were set aside because the adjudicating authority relied on outside information without independent inquiry into whether contested receipts had territorial nexus with the State, and the petitioner lacked adequate opportunity to present documents and to invoke exemption, limitation and double taxation defences; procedural infirmity justified remand. The matter is to be re-adjudicated after affording a single opportunity to the petitioner to place all relevant contentions on territorial nexus, exemption, double taxation and limitation, to be completed within six weeks.

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Issues: Whether the Order-in-Original dated 04.07.2024 and the Rectification Order dated 23.06.2025 are sustainable in view of lack of adequate opportunity to the petitioner, absence of independent inquiry into territorial nexus of the considered receipts (State of Odisha), potential double taxation, and limitation; and whether the impugned orders should be set aside and the matter remanded for fresh adjudication.

Analysis: The adjudicating authority proceeded on information from the Income Tax Department without conducting an independent inquiry to determine whether the amounts treated as consideration related to works executed within the State of Odisha. The petitioner did not have adequate opportunity before that authority to place documents and to rely upon exemption under Notification No. 25/2012-ST dated 20.06.2012 or to raise limitation and double taxation defences. Subsequent orders by other authorities (including the Principal Commissioner, Ranchi, and appellate decision) have deleted or held demands unsustainable for overlapping periods or on limitation grounds, which the petitioner could not invoke before the impugned order. Principles requiring a reasonable opportunity of being heard and prevention of double taxation justify revisiting the adjudication where procedural infirmity is shown.

Conclusion: The Order-in-Original dated 04.07.2024 and the Rectification Order dated 23.06.2025 are set aside and the matter is remitted to the adjudicating authority for fresh adjudication after affording the petitioner a single opportunity to place all relevant documents and contentions, including those relating to exemption, territorial nexus, double taxation and limitation; the fresh adjudication to be completed within six weeks from receipt of this order.

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