Order Date – 09 January 2024

Parties – M/s. Hindustan Coca-Cola Beverages Pvt. Ltd., BBSR  Vs The Commissioner, CT and GST, Odisha, Cuttack and others  

Facts –

• The Petitioner , M/s. Hindustan Coca-Cola Beverages Pvt. Ltd., BBSR , was issued with an rectification appeal order demanding to pay tax and interest within 15 days of receipt, failing which recovery proceeding will be initiated. However it was submitted that by the rectification there was enhancement without giving opportunity of hearing.

Issue –

• Whether enhancement order issued without giving opportunity of hearing is valid?

Order –

• The Divisional Bench of Hon’ble High Court observed that proviso in sub-section (1) of section 81 says that an amendment, which has effect of enhancing an assessment or otherwise increase 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.
• If there has been increase in the amount of interest by the rectification, petitioner was entitled to a notice for being heard. The concept of aggregate demand remaining same is not supported by the provision. 
• Impugned rectification order and the intimation are set aside and quashed. Petitioner will forthwith communicate certified copy of this order to the authority within 24th January, 2025 and obtain date of hearing, for purpose of rectification.