The court affirmed that once a delegated authority has exercised revisionary powers under the OST Act, the original authority cannot reinitiate proceedings, ensuring that statutory appeals remain the proper recourse.

JUDGMENT :

By way of the instant writ petition under Articles 226 & 227 of the Constitution of India, the petitioner craves to challenge the following:

a. Demand notice dated 30^th June, 2025 (Annexure-3) issued by the Sales Tax Officer, CT& GST Circle, Cuttack-I West, Cuttack;

b. Order dated 31^st May, 2025 (Annexure-2) passed in Revision Case No.DCST/CUIW/1/2024-25 by the Additional Commissioner of Sales Tax, CT & GST Territorial Range, Cuttack-I, Cuttack;

c. Show-cause notice dated 18^th March, 2025 (Annexure-1) issued by the Additional Commissioner of CT & GST, CT & GST Territorial Range, Cuttack-I, Cuttack under Section 23(4) of the Odisha Sales Tax Act, 1947 (for convenience, “the OST Act”) in connection with the assessment Order dated 4th June, 2022 passed by the Sales Tax Officer, CT & GST Circle, Cuttack-I, Cuttack under Section 12(5) of the OST Act pertaining to the assessment year 1996-97 (1st December, 1996 to 31^st March, 1997).

Facts narrated in the writ petition:

2. The Petitioner, Government of India Undertaking, was subjected to assessment pertaining to Assessment Year 1996-97 (1^st December, 1996 to 31^st March, 1997) under Section 12(5) of the OST Act by the Sales Tax Officer vide order dated 2^nd July, 2002. The appeal directed against said assessment order culminated in confirmation and thereafter by order dated 30^th September, 2003 said appellate order got affirmed in second appeal by the Odisha Sales Tax Tribunal vide order dated 4th November, 2019. In further proceeding thereafter under Section 24 of the OST Act, this Court, while disposing of the revision petition, being STREV No.19 of 2020, vide Order dated 22^nd December, 2021 set aside the order in second appeal; and remitted the matter for fresh assessment.

2.1. Consequent upon such order of remit, the Sales Tax Officer passed fresh assessment order on 4th June, 2022 reducing the demand to ‘nil’, which led to claim of refund of Rs.20 lakhs.

2.2. The Additional Commissioner of CT & GST, Territorial Range, Cuttack-I, Cuttack initiated revision proceeding by issue of show-cause notice on 18^th March, 2025 invoking provisions of Section 23(4)(a) of the OST Act contemplating to revise such assessment order leading to claim for refund of tax paid.

2.3. In connection with said show-cause notice, by a detailed Order dated 31^st May, 2025 passed in Revision Case No.DCST/CUIW/1/2024-25 by the Additional Commissioner, the assessment order has been revised and in consequence thereof, the Sales Tax Officer, CT & GST Circle, Cuttack-I West, Cuttack raising a demand comprising tax and surcharge besides penalty to the tune of Rs.20,80,000/-, directed the petitioner to deposit.

Hearing:

3. The matter in writ petition came up for hearing on 04.09.2025 under the heading “Fresh Admission”. Serious objection as to entertainment of writ petition has been raised by the Standing Counsel for the CT and GST Organisation.

3.1. Heard Mr. Pranaya Kishore Harichandan, learned counsel appearing for the petitioner and Mr. Sunil Mishra, learned Standing Counsel appearing for the CT & GST Organisation on the question of entertainment of writ petition.

Submissions:

4. Mr. Pranaya Kishore Harichandan, learned counsel appearing for the petitioner laid much emphasis on the satisfaction of twin conditions as envisaged under Rule 80 of the Odisha Sales Tax Rules, 1947 (for short, “OST Rules) for initiation of proceeding for revision under Section 23(4)(a) of the Odisha Sales Tax Act, 1947 (“OST Act”, for short). He vociferously submitted that