HC Quashes Ex Parte GST ITC Demand; Matter Remanded

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 27 May, 2025

GST ITC denial ex parte

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

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied