Violation of Natural Justice in Mining Royalty RCM Dispute

The Orissa High Court quashed adjudication and rectification orders passed against Janardan Panda under Sections 73 and 161 of the CGST/OGST Acts after finding that the adjudicating authority had mechanically proceeded without considering the taxpayer’s reply to the show cause notice and without granting the requested opportunity of personal hearing. 

The Court held that the authorities acted in flagrant violation of principles of natural justice while raising GST demands under reverse charge mechanism on royalty, DMF, EMF, dead rent, and surface rent relating to mining operations. 

The matter was remanded for fresh adjudication with liberty to the petitioner to adduce evidence in support of his claim that no taxable event had occurred during the relevant period.