HC Sets Aside GST Assessment Order Passed Without Proper Notice

Case Details: OLA Fleet Technologies (P.) Ltd. vs. State of Odisha [2025] 179 taxmann.com 78 (Orissa)

Judiciary and Counsel Details

• Harish Tandon, CJ. & M.S. Raman, J.
• Sandeep Sachdeva & Mukesh Panda, Advs. for the Petitioner.
• Sunil Mishra, Standing Counsel & Seshadev Das, ASC for the Respondent.

Facts of the Case

The petitioner, registered taxpayer engaged in fleet and mobility services, was subjected to assessment proceedings under Section 73 of the CGST Act and the Odisha GST Act. During the proceedings, no statutory notices, including Form GST ASMT-10 or the show cause notice in Form GST DRC-01, were served. On the GST portal ‘no records found’ under the intimations tab and submitted that a reply in Form GST ASMT-11 had been filed in response to a scrutiny notice, after which no further communication was received. An ex parte demand order was later observed on the GST portal without adhering to the compulsory procedural obligation. The issue was subsequently presented before the High Court.

High Court Held

The High Court held that the assessment order was unsustainable as it was passed ex parte without ensuring proper service of statutory notices or affording a reasonable opportunity of hearing, thereby violating the provisions relating to assessment under the CGST Act and Odisha GST Act. The order failed to mention Form GST ASMT-10 or Form GST ASMT-11, demonstrating a lack of compliance with mandatory procedural requirements. It was further held that such procedural defects could not be cured by subsequent explanations, as the original order remained defective. The assessment order was set aside, and the jurisdictional officer under CGST was directed to serve the requisite documents and provide an opportunity to submit a reply before passing a fresh order.