Non-Payment of Salary to Data Entry Operators and Excess Deduction of Service Tax / GST: Orissa HC quashes Order Blacklisting Company [Read Order]

Salary - Data Entry Operators - Deduction - Service Tax - GST - Orissa HC Blacklisting Company - taxscan

The Orissa High Court, on Friday, quashed an order blacklisting M/s Mind Mart for the alleged non-payment of salary and excess deduction of service tax/GST from the salary of data entry operators. The order was quashed on ground of violation of natural justice principles.

A complaint was made against the petitioner-Company, M/s Mind Mart by the Data Entry Operators before the Competent Authority alleging non-payment of monthly remuneration by the Petitioner as well as excess deduction from their salary towards Service Tax, GST etc. Following the complaint, Collector of the district passed an order blacklisting the Petitioner firm.

The petitioner approached the Court contending that the order is both illegal and arbitrary and having been passed in violation of the well-settled principles of natural justice that no adverse order against a party be passed without having heard the party.

The Petitioner alleged that first of all involving such a serious issue, the Petitioner has not been involved in any such representation disposal and secondly, there is also no finality of any complaint to the law and order authority if at all submitted by the Data Entry Operators against the Service Provider, the Petitioner.

Justice Biswanath Rath quashed the order holding that “For the opinion of this Court even assuming the Collector is in possession of the report from the Tahasildar, there is no material enclosing the copy of the report to the Petitioner asking its response to such report. In any case since the decision for blacklisting of the Petitioner has been taken by the Collector without involvement of the Petitioner and further in view of all the above glaring defects, the final outcome resulting in blacklisting the Petitioner remains completely defective. Even though this Court finds, there have been certain correspondences already made to the Petitioner asking its response, this Court finds, there is unjust decision and the decision involved taken in haste.”

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