[Cites 2, Cited by 0]
Orissa High Court
M/S. Margdarshee Hospitality And vs Chief Commissioner Of Ct & Gst on 16 April, 2026
Author: Murahari Sri Raman
Bench: Murahari Sri Raman
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.P.(C) No.10023 of 2026
M/s. Margdarshee Hospitality and
Retails Private Limited,
Jagatsinghpur .... Petitioner
Mr. Rudra Prasad Kar, Senior Advocate
assisted by Ms. Itishree Tripathy, Advocate
-versus-
Chief Commissioner of CT & GST, .... Opposite Parties
Odisha, Cuttack and others
Mr. Sunil Mishra, Standing Counsel
CORAM:
THE HON'BLE THE CHIEF JUSTICE
AND
THE HON'BLE MR. JUSTICE MURAHARI SRI RAMAN
ORDER
Order No. 16.04.2026
01. 1. Challenging the show cause notice dated 12.03.2024
(Annexure-1) and consequential order dated 31.08.2024
(Annexure-2) passed under Section 74 of the Central Goods
and Services Tax Act/the Odisha Goods and Services Tax
Act, 2017 (Collectively, "GST Act") by the Assistant
Commissioner of State Tax, CT and GST, Jagatsinghpur
Circle, Cuttack-II, Odisha (opposite party No.2) for the tax
period(s) 2017-18, the petitioner has come up before this
Court by way of filing the present writ petition beseeching
invocation of extraordinary jurisdiction.
2. Sri Rudra Prasad Kar, learned Senior Advocate being assisted
by Ms. Itishree Tripathy, learned Advocate appearing for the
petitioner submitted that the petitioner being issued with
notice on 23.11.2020 for cancellation of Registration
Certificate, the CT and GST Officer, Jagatsinghpur Circle,
Cuttack-II cancelled the Registration Certificate by order
dated 06.12.2020 determining the tax liability as "Zero/Nil".
It is urged that the petitioner for all practical purposes is
deemed to be "unregistered person", since the Registration
Certificate is ineffective in view of its cancellation. However,
upon a notice issued on 12.03.2024 for the tax period(s)
2017-18 purportedly under Section 74 of the GST Act vide
order dated 31.08.2024 was passed.
2.1. It is submitted by Sri Rudra Prasad Kar, learned Senior
Advocate that existence of such order, wherein the demand
under Section 74 of the GST Act was raised, came to its
knowledge only on 10.03.2026, when the opposite parties
sought to initiate recovery proceeding by issuing notice to its
banker. He drew attention of this Court vide order dated
04.12.2025 passed in the case of Ashis Ranjan Sahu Vrs. The
Chief Commissioner of CT & GST, Odisha and others,
W.P.(C) No.9871 of 2025 wherein this Court appreciating the
fact that notice issued to 'unregistered person' via e-mail did
not reach the addressee, entertained the writ petition. For
better appreciation, Paragraph-9 of the said order is quoted
hereunder:
"9. Be that as it may, without entering into such aspect,
this Court perceives that the petitioner could not take
part in the proceeding under Section 63 of the GST Act
to establish its claim due to the fact that after
introduction of GST regime, he remained an
unregistered person. It is incumbent upon the CT and
GST Officer to have verified whether at all the SCN for
adjudication had reached the addressee. As the
petitioner remained absent on the date fixed for
proceeding, ex parte order of adjudication has been
passed under Section 63 of the GST Act. Hence, it
appears that the petitioner remained in dark with
regard to proceeding being initiated under Section 63
of the GST Act. This Court finds force in the contention
of the learned Senior Advocate that the petitioner has
been deprived of hearing and production of material
before the Adjudicating Authority. The prayer for
opportunity to file objection/explanation with respect
to SCN issued under Section 63 of the GST Act can be
acceded to."
2.2. It is vehemently contended by the learned Senior Advocate
that since the petitioner disclosed its tax liability truthfully
and appropriately which was accepted by the authority
concerned while taking steps to cancel the Registration
Certificate, there was no occasion for the adjudicating
authority to initiate the proceeding under Section 74 of the
GST Act inasmuch as the ingredients for such initiation
proceeding are conspicuously absent on the facts and
circumstances of the case. This matter requires consideration.
3. Issue notice to the opposite parties.
4. Sri Sunil Mishra, learned Standing Counsel for the C.T. and
G.S.T. Department/opposite parties accepts and waives issue
of notice and concedes that the copy of the writ petition has
already been served on him.
5. Counter affidavit, if any, be filed within a period of three
weeks after serving copy thereof on learned counsel for the
petitioner; rejoinder thereto, if any, shall be filed within a
period of one week thereafter.
6. List this matter on 14th May, 2026.
7. The factual scenario as adumbrated in the Interlocutory
Application reveals that after cancellation of Registration
Certificate upon determining the liability at "Zero/Nil" in the
year 2020, proceeding under Section 74 of the GST Act is
stated to have been initiated by issue of a show cause notice
on 12.03.2024 instead of taking recourse to Section 63 of the
GST Act. The petitioner being deemed to be "unregistered
person", the authority concerned is not competent to initiate
the proceeding under Section 74 of the GST Act and he was
supposed to adhere to the method and modality specified
and/or prescribed under the statute. It is submitted by the
learned Senior Advocate that the adjudicating authority has
transgressed instructions issued by the Chief Commissioner
of CT and GST Department on 10.12.2025 addressed to all
Circle Heads, CT and GST, Odisha culling out the purport of
decision rendered by this Court in Ashis Ranjan Sahu
(supra). Physical mode of service of notice is warranted in
order to make the petitioner/unregistered person to know
about the proceeding, but it is not warranted to issue notice in
electronic mode, which, in fact, in this case deprived the
petitioner of taking part in the adjudication process.
7.1. Hence, this Court finds prima facie case being made out
by the petitioner which needs reply of the opposite
parties. Awaiting reply of the opposite parties, the
authorities are restrained from taking any coercive steps
against the petitioner in pursuance of show cause notice
dated 12.03.2024 (Annexure-1) and consequential order
dated 31.08.2024 (Annexure-2) passed by the opposite
party No.2 under Section 74 of the GST Act.
(Harish Tandon)
Chief Justice
(M.S. Raman)
Judge
Bichi
Signed by: BICHITRANANDA SAHOO
Location: Orissa High Court, Cuttack
Date: 17-Apr-2026 17:43:58
