TaxTMI 
TaxTMI 
2026 (1) TMI 1139
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....ts corresponding tax liability including of Cess was Rs. 15,84,20,53,601/-. Thus, the remaining balance of the outward turnover which is otherwise not taxable was of Rs. 27,09,23,75,384/- and the notional tax value thereof was Rs. 2,69,18,372/-. 2. Sri Rudra Prasad Kar, learned Senior Advocate appearing along with Sri Satya Smruti Mohanty, learned Advocate submitted that the State Tax Officer, Commercial Tax & Goods and Service Tax Circle, Angul ("Proper Officer", for short) under an impression that there was discrepancy in the returns filed by the petitioner vis-à-vis the outward liability data reflected in E-Way Bill portal, issued Form GST ASMT-10 dated 13th November, 2023 as prescribed under Rule 99 of the Central Goods and Services Tax Rules, 2017/the Odisha Goods and Services Tax Rules, 2017 (for short, "GST Rules"). 2.1. It is contended that said Form GST ASMT-10 though stated to have been uploaded, has never been served on the petitioner nor could it be located by the petitioner. Nonetheless, the said Authority issued a Demand-cum-Show Cause Notice in Form GST DRC-01 alleging that the tax payable on supplies including zero-rated supplies as per GSTR-3B returns ....
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....r document: Provided further that the said period of six months shall not apply in such cases where the rectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission: Provided also that where such rectification adversely affects any person, the principles of natural justice shall be followed by the authority carrying out such rectification.") with the hope that it would be given an opportunity to explain the transactions so that the arbitrary demand as raised would get scaled down to NIL. 2.4. It is vehemently contended by Sri Rudra Prasad Kar, learned Senior Advocate that without affording an opportunity of hearing, the said application for rectification could not have been rejected vide Order dated 20th June, 2025, which is outcome of non-application of mind and non-consideration of germane material available on record. It is emphasized that said order, sans any reason, warrants indulgence of this Court in the matter. 2.5. Being laconic and terse order, which cannot be held to be tenable in the eye of law, the learned Senior Advocate insisted for quashing not only the Order of rectific....
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....o treat it as sufficient service. In such view of the matter, it is obvious that the petitioner was prevented from appearing before the Proper Officer to present its case on scheduled dates for plausible reasons. 5.1. Sri Rudra Prasad Kar, learned Senior Advocate appearing for the petitioner relied on the decisions of the Delhi High Court and Madhya Pradesh High Court in the cases of ACE Cardiopathy Solutions Private Limited Vrs. Union of India and others, 2024 (5) TMI 974 (Delhi), Ess Dee Industries through its Partner Shambhu D. Dayal Sharma Vrs. Commissioner of DGST & others, 2025 (11) TMI 185 (Delhi), Udayraj Yadav Vrs. Sales Tax Officer, Delhi, 2025 (1) TMI 1507 (Delhi), Kurlon Retail Limited Vrs. Sales Tax Officer and others, 2025 (12) TMI 1774 (Delhi), HVR Solar Private Limited Vrs. Sales Tax Officer Class II Avato Ward 67 and another, 2025 (4) TMI 730 (Delhi), Light Group Vrs. State of Madhya Pradesh and others, 2025 (5) TMI 258 (Madhya Pradesh), Shree Shyam Granites and Marbles Vrs. The Assistant Commissioner (ST) (FAC), Hosur (South)-III Circle, Hosur, 2023 (2) TMI 652 (Madras) and R.P. Industries Vrs. State of U.P. and 2 others, 2025 (9) TMI 461 (Allahabad), to buttre....
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....tices and Orders'. 5. This issue is further highlighted by another judgment of the Madras High Court dated 31.07.2023 in W.P. No.22369 of 2023, Sabari Infra (P.) Ltd. Vrs. Assistant Commissioner (ST), (2023) 154 taxmann.com 147 = (2023) 10 Centax 92 (Mad) connected petitions, wherein the Madras High Court has noticed as under : '3. The only ground on which the, the impugned orders are under challenge is that the notices, which preceded the impugned orders were hosted in the Dashboard of the petitioner meant for 'Additional Notices and Orders' whereas, the notices should have been hosted by the respondent in the Dash Board for, 'View Notices and Orders'. 4. The learned counsel for the petitioner has drawn attention to the manual copy given by the respondent in the web-portal, which reads as under: 'How can I view or download the notices and demand orders issued by the GST tax authorities? To view or download the notices and demand orders issues by the GST tax authorities, perform the following steps: 1. Access the www.gst.gov.in URL. The GST Home page is displayed. 2. Login to the GST Portal with valid credentials. 3. Cl....
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....and consequently, the demand has been created against the petitioner." 5.4. It is manifest from the documents available on record and it is emerged from the submissions of the counsel for the parties that the petitioner could not respond to the Show Cause Notice which result in his non-appearance before the Proper Officer to explain and file response. Consequent upon non-appearance, ex parte Order under Section 73 of the GST Act has been passed. It is apposite to take note of the fact that the rejection of application under Section 161 for rectification of such order passed under Section 73 of the GST Act was made in violation of the principles of natural justice seriously causing prejudice, having repercussion of evil consequence. Therefore, the Order dated 20.06.2025 cannot be countenanced. 6. Another point canvassed by the learned Senior Advocate Sri Rudra Prasad Kar is that the Order dated 20.06.2025 is liable to be set aside for the reason that it smacks arbitrariness inasmuch as it is without any reason. With the afore-discussed factual matrix and the decisions rendered by different High Courts on the identical subject-matter, established that the notices/orders were up....
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....ant grounds and by disregarding extraneous considerations. (f) Reasons have virtually become as indispensable a component of a decision-making process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies. (g) Reasons facilitate the process of judicial review by superior courts. (h) The ongoing judicial trend in all countries committed to rule of law and constitutional governance is in favour of reasoned decisions based on relevant facts. This is virtually the lifeblood of judicial decision-making justifying the principle that reason is the soul of justice. (i) Judicial or even quasi-judicial opinions these days can be as different as the Judges and authorities who deliver them. All these decisions serve one common purpose which is to demonstrate by reason that the relevant factors have been objectively considered. This is important for sustaining the litigants' faith in the justice delivery system. (j) Insistence on reason is a requirement for both judicial accountability and transparency. (k) If a Judge or a quasi-judicial authority is not candid enough about his/her decision-....
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....re and what they imply, and to identify the best means to some end, and, in general, to distinguish what we should believe from what we merely do believe. The importance of giving reason, it reveals a rational nexus between facts considered and conclusions reached. 9. In Union of India Vrs. Madal Lal Capoor, AIR 1974 SC 87 and Uma Charan Vrs. State of MP, AIR 1981 SC 1915, the Apex Court held reasons are the links between the materials on which certain conclusions are based and the actual conclusions. They disclose how the mind is applied to the subject-matter for a decision whether it is purely administrative or quasi-judicial and reveal a rational nexus between the facts considered and conclusions reached. The reasons assure an inbuilt support to the conclusion and decision reached. The fair play requires recording of germane and relevant precise reasons when an order affects the right of a citizen or a person irrespective of the fact whether it is judicial, quasi-judicial or administrative. The recording of reasons is also an assurance that the authority concerned applied its mind to the facts on record and it is vital for the purpose of showing a person that he is rece....
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....ciple of audi alteram partem, a basic principle of natural justice which must inform every quasi-judicial process and this rule must be observed in its proper spirit and mere pretence of compliance with it would not satisfy the requirement of law. Recording of proper reasons would be essential, so that the Appellate Court would have advantage of considering the considered opinion of the High Court on the reasons which had weighed with the trial Court. Having said so, in Assistant Commissioner, Commercial Tax Vrs. Shukla & Brothers, (2010) 4 SCR 627 it has been observed as follows: "In a very recent judgment, the Supreme Court in the case of State of Orissa Vrs. Dhaniram Luhar, (2004) 5 SCC 568 while dealing with the criminal appeal, insisted that the reasons in support of the decision was a cardinal principle and the High Court should record its reasons while disposing of the matter. The Court held as under: '8. Even in respect of administrative orders Lord Denning, M.R. In Breen Vrs. Amalgamated Engg. Union observed: ''The giving of reasons is one of the fundamentals of good administration.' In Alexander Machinery (Dudley) Ltd. Vrs. Crabtree....
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....rue that it smacks arbitrariness. 7. In view of the aforesaid discussion, this Court cannot uphold the action of the State Tax Officer, as failure to provide an opportunity for a hearing does invite interference in the order impugned. This Court appreciating the argument advanced by the learned Senior Advocate that the Assessing Officer having access to the records as uploaded by the petitioner in the web-portal of the Department necessary rectification as pointed out in the application for the rectification dated 25.04.2025 could have been taken care of even in absence of the petitioner. Section 161 of the GST Act empowers any authority, who has passed or issued any decision or order or notice or certificate or any other document, to rectify any error which is apparent on the face of record. As submitted the returns have been uploaded and the documents relating to supplier as also the recipient being available on record and accessible by the Authority concerned, there is no impediment to consider such documents which could not be examined during the course of the proceeding under Section 73 of the GST Act. It is admitted by counsel appearing for respective parties that the noti....