The failure to provide valid notice and opportunity to be heard constitutes a violation of natural justice, necessitating quashing of ex parte orders under the GST Act.

ORDER :

1. The petitioner, engaged in manufacture of semi-finished products of iron, non-alloy steel, flat rolled products of iron, non-alloy steel, other alloy steel in ingots or other forms, filed returns in Form GSTR-9 and Form GSTR-9C for the tax periods from 1st April, 2020 to 31st March, 2021. The total turnover as reflected in the E-Way Bill portal was of Rs.1,67,10,02,07,853/- against which the tax liability including that of Cess was of Rs.15,86,89,71,973/-. Out of this, the total turnover attributable to outward taxable supplies was Rs.1,40,00,78,32,469/-, and its 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 filed for the tax periods relating to the financial year 2020-21 was Rs.16,05,57,75,136/-, whereas as per E-Way Bill report, it was Rs.16,14,20,56,024/-, and, therefore, the petitioner was called upon to make good the short payment of tax to the tune of Rs.8,62,80,720/-.

2.2. It is submitted that the petitioner could not participate in the proceeding under Section 73 initiated by issue of Notice in Form GST DRC-01 that culminated by issue of Order dated 06.01.2025. The State Tax Officer, Commercial Tax and Goods and Service Tax Circle, Angul passed ex parte Order under Section 73 of the GST Act on 06.01.2025.

2.3. Being informed by the Office of the authority concerned, it could come to knowledge of the petitioner that the notices and order were uploaded under the tab with heading— “Additional Notices/Orders”. It is, thus, emphatically urged by the learned Senior Advocate that none of the communications stated to have been uploaded by the Proper Officer could be accessed by the petitioner. Upon retrieving such information as uploaded in the portal under said category/tab, to obviate such mistake in the ex parte Order under Section 73 the petitioner approached the said authority by way of an application under Section 161 of the GST Act, [ Section 161 of the Central Goods and Services Tax Act, 2017 reads as follows:

“161. Rectification of errors apparent on the face of record.—

Without prejudice to the provisions of Section 160 , and notwithstanding anything contained in any other provisions of this Act, any authority, who has passed or issued any decision or order or notice or certificate or any other document, may rectify any error which is apparent on the face of record in such decision or order or notice or certificate or any other document, either on its own motion or where such error is brought to its notice by any office