The Orissa High Court has quashed the increased tax demand against Coca Cola.
The bench of Justice Arindam Sinha and Justice M.S. Sahoo has observed that an amendment, which has the effect of enhancing an assessment or otherwise increasing liability of the assessee shall not be made unless the authority has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard.
The bench added that if there has been an increase in the amount of interest by the rectification, petitioner was entitled to a notice for being heard. The concept of aggregate demand remaining the same is not supported by the provision.
The petitioner/assessee, Hindustan Coca Cola has challenged intimation intimating that the Joint Commissioner of Sales Tax (Appeal), in its appeal had dismissed the appeal. The petitioner then became liable to pay tax and interest within 15 days of receipt, failing which recovery proceeding will be initiated.
The assessee stated that the appeal order was never communicated.
The department contended that the order is one of rectification made to order. It having been disclosed in the writ petition is demonstration that petitioner was communicated the rectification order, subject matter of the intimation.
The mention of appeal order gives no.3623 and date 21st October, 2023. It carries error inasmuch as the rectification of appeal order is order no.3623 dated 21st October, 2024. The order reference has been correctly stated in the intimation but the date carries a mistake.
The department committed error, albeit typographical error in printing date of the order mentioned in impugned intimation. Petitioner’s contention is that the order mentioned in impugned intimation was not served. It could not have been as the particulars of the order themselves carry an error. However, we are convinced that the petitioner was aware all along.
The court quashed the rectification order and the intimation.
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Case Details
Case Title: M/s. Hindustan Coca-Cola Beverages Pvt. Ltd., Versus The Commissioner, CT and GST Odisha, Cuttack and others
Case No.: W.P.(C) No.32208 of 2024
Date: 09/01/2025
Counsel For Petitioner: K.R. Choudhury
Counsel For Respondent: S. Mishra
