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Orissa High Court
M/S. Siba Prasad Parida vs Central Board Of Indirect Taxes & .... ... on 12 March, 2026
Author: Murahari Sri Raman
Bench: Murahari Sri Raman
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.P.(C) No.7281 of 2026
M/s. Siba Prasad Parida .... Petitioner
Mr. Rudra Prasad Kar, Senior Advocate
assisted by Ms. Itishree Tripathy, Advocate
-versus-
Central Board of Indirect Taxes & .... Opposite Parties
Customs (CBIC), New Delhi and
others
Mr. Sunil Mishra, Standing Counsel for CT
& GST Organization
(For Opposite Party Nos.4 and 5)
Mr. Avinash Kedia, Junior Standing Counsel
(For Opposite Party Nos.1 to 3)
CORAM:
THE HON'BLE THE CHIEF JUSTICE
AND
THE HON'BLE MR. JUSTICE MURAHARI SRI RAMAN
ORDER
Order No. 12.03.2026
01. W.P.(C) No.7281 of 2026 and I.A. No.4230 of 2026
1. The petitioner in this writ petition has challenged the
issuance of show-cause notice dated 2nd February, 2024 (Annexure-
1) by the Deputy Commissioner of State Tax, Kendrapara Circle,
Cuttack-II, Odisha, opposite party no.5 and the Order dated 5th
August, 2024 (Annexure-2) passed by the Deputy Commissioner of
State Tax, Kendrapara Circle, Cuttack-II, Odisha, opposite party
no.5.
2. Based on objections raised by the Directorate General of
Goods and Service Tax Intelligence (DGGI), Bhubaneswar, a
proceeding under Section 74 of the Odisha Goods and Services Tax
Act, 2017 (for short the "OGST Act") was initiated by the
Additional Commissioner, CGST and Central Excise, Bhubaneswar
Commissionerate, Bhubaneswar.
3. After thorough examination with respect to non-payment
of GST on "works contract services" provided to Government
Organizations during the tax periods covered during the Financial
Years 2017-18 to 2019-20, non-payment of GST on royalty, non-
payment of GST on legal services, the Additional Commissioner,
CGST and Central Excise, Bhubaneswar Commissionerate,
Bhubaneswar on finding that the petitioner has deposited the
amount of tax along with interest prior to issuance of show-cause
notice dated 19th April, 2022, passed an Order-in-original dated 30th
June, 2023, passed favourable order. Besides this, while dispensing
with imposition of penalty in view of the above fact, the Additional
Commissioner, CGST and Central Excise, Bhubaneswar
Commissionerate, Bhubaneswar imposed penalty of Rs.25,000/-
under Section 122(3) of the OGST Act. While the matter stood
thus, Deputy Commissioner of State Tax, Kendrapara Circle,
Cuttack-II, Odisha initiated proceeding under Section 73 of the
OGST Act on the very same issue with respect to Financial Year
2019-20.
4. Sri Rudra Prasad Kar, learned Senior Advocate assisted
by Ms. Itishree Tripathy, learned Advocate appearing for the
petitioner would submit that for the tax periods pertaining to
financial year 2019-20, the petitioner disclosed its turnover and
paid taxes which were duly acknowledged by the CGST Authority
while adjudicating the matter vide Order-in-Original dated 30th
June, 2023.
4.1. He submitted that since the Additional Commissioner,
CGST and Central Excise, Bhubaneswar Commissionerate,
Bhubaneswar had accepted the tax deposited along with interest
before issue of notice, the Deputy Commissioner of State Tax is not
competent to determine the taxable turnover independently by
taking into account the facts and figures disclosed in the return(s)
which had already been verified and adjudicated upon by the
Central Authority.
4.2. For the sake of argument but not conceding, he submitted
that if the figures arrived at by the Deputy Commissioner of Stax
Tax vide Order dated 5th August, 2024 is accepted, the petitioner
would be entitled to get refund of tax amount, which admittedly he
has paid in excess on the taxable turnover determined by the State
Tax Authority.
4.3. He further raised the issue of jurisdiction that when the
Central Authority for the self-same transaction qua financial year
2019-20 with respect to material disclosed in returns has already
been adjudicated upon, in view of Section 6(2)(b) of the OGST Act
the Deputy Commissioner of State Tax, CT & GST Circle,
Kendrapara is not competent to proceed again with the same
subject-matter/turnover.
5. This matter requires consideration.
6. Issue notice to the opposite parties.
7. Sri Sunil Mishra, learned Standing Counsel for CT &
GST Organization appears and waives service of notice on behalf
of the opposite party nos.4 and 5 and Sri Avinash Kedia, learned
Junior Standing Counsel appears and waives service of notice on
behalf of opposite party nos.1 to 4.
8. Perusal of record reveals that pursuant to show-cause
notice dated 31st March, 2022 issued by the DGGI, Bhubaneswar,
adjudication order-in-original was passed by the Additional
Commissioner, CGST and Central Excise, Bhubaneswar
Commissionerate, Bhubaneswar on 30th June, 2023 under Section
74 of the OGST Act (Annexure-4). The show-cause notice shows
that the examination of material was with respect to non-payment
of GST on works contract services rendered by the petitioner for
different financial years including 2019-20. After threadbare
discussion, an order was passed acknowledging that the amount of
tax along with interest was found deposited and the said Central
Authority, therefore, dispensed with imposition of penalty.
However, the Deputy Commissioner of State Tax, Kendrapara
Circle, Cuttack-II, Odisha has passed an order dated 5th August,
2024 under Section 73 of the OGST Act pertaining to the financial
year 2019-20 with the allegation that the TDS amount was not
disclosed in returns in Form GSTR-3B and treated the taxable
turnover for that period as suppression.
9. As it appears, mere non-disclosure of TDS in such
returns would not tantamount to suppression of taxable turnover,
inasmuch as the Central Authority did examine the books of
accounts along with profit and loss account and balance-sheet
related to the financial years 2017-18, 2018-19 and 2019-20. Said
Authority adjudicated upon the allegation of non-payment of tax as
reported by the DGGI, Bhubaneswar. Since the same transactions
are again sought to be subjected to examination by State Tax
Authority, this Court is prima facie of the opinion that in view of
Section 6(2)(b) of the OGST Act, the Deputy Commissioner of
State Tax, Kendrapara Circle, Cuttack-II, Odisha cannot usurp such
power in order to continue with fishing and roving enquiry. In view
of such, the petitioner is entitled to an interim protection.
10. As the learned Standing Counsel for CT & GST
Organization and the learned Junior Standing Counsel appearing for
the respective opposite parties have sought for accommodation to
file the respective counter affidavits in the matter, it is directed that
no coercive action shall be taken against the petitioner pursuant to
Order dated 5th August, 2024 passed under Section 73 of the OGST
Act by the Deputy Commissioner of State Tax, Kendrapara Circle,
Cuttack-II, Odisha till the next date.
11. List this matter on 9th April, 2026. Counter affidavit, if
any, shall be filed in the meantime.
(Harish Tandon)
Chief Justice
(M.S. Raman)
Judge
MRS/Laxmikant
Signed by: LAXMIKANT MOHAPATRA
Designation: Senior Stenographer
Reason: Authentication
Location: High Court of Orissa, Cuttack
Date: 13-Mar-2026 18:48:33
