Case Details: Shree Jagannath Traders vs. Chief Commissioner GST & Central Excise - [2025] 174 taxmann.com 677 (Orissa)
Judiciary and Counsel Details
- Harish Tandon, CJ. & Murahari Sri Raman, J.
- Rudra Prasad Kar, Sr. Adv. & Sriman Arpit Mohanty, Adv. for the Petitioner.
- Bismay Anand Prusty, Sr. Standing Counsel for the Respondent.
Facts of the Case
The petitioner, a licensed wholesaler of kerosene oil, procured goods exclusively from Indian Oil Corporation Limited (IOCL) and sold them at government-fixed prices, charging applicable GST and claiming input tax credit (ITC). It was submitted that no Order-in-Original was ever served on the petitioner, and the petitioner became aware of the tax demand only through a phone call from the GST office.
The order was passed ex parte, disallowing the ITC claim without providing an opportunity for hearing or submission of books of account. The petitioner submitted that the issues raised could have been clarified if a chance had been given to reconcile records. The matter was placed before the Hon’ble High Court of Orissa.
High Court Held
The Hon’ble High Court of Orissa held that there was no allegation of suppression and no material to suggest that the petitioner had not purchased the goods from IOCL or sold them at the prescribed price. Considering the nature of the supply and the involvement of a government-regulated supplier, the Court observed that the petitioner should have been given an opportunity to support the ITC claim with relevant documents. The Court accordingly set aside the impugned order and remanded the matter to the Assessing Authority for fresh consideration.
List of Cases Referred to
- Kiran Stone Crusher v. State of Odisha [2010] 31 VST 45 (Ori) (para 7.3)
- State of Karnataka v. Ecom Gill Coffee Trading (P.) Ltd [2023] 148 taxmann.com 352/72 GSTL 134 (SC) (para 7.6)
- ALD Automotive (P.) Ltd. v. Commercial Tax Officer [2018] 99 taxmann.com 202/70 GST 751 (SC) (para 7.7).
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