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IN THE HIGH COURT AT CALCUTTA
Raja Basu Chowdhury
Tara Lohia Private Limited – Appellant
Versus
Additional Commissioner, CGST & CX, Kolkata South Commissionerate – Respondent
| Table of Content |
|---|
| 1. challenge to tax notice based on audit findings. (Para 1 , 2 , 3) |
| 2. arguments regarding the substantiation of claims. (Para 4 , 5 , 6) |
| 3. court's stance on jurisdiction and evidentiary standards. (Para 7) |
| 4. court discusses the obligations of the petitioner to provide evidence. (Para 8 , 9 , 10) |
| 5. court's reasoning regarding jurisdictional issues. (Para 11) |
| 6. conclusion on dismissal of the writ petition. (Para 12) |
JUDGMENT :
1. The present writ petition has been filed inter alia challenging the order dated 29th January, 2025 issued under Section 74 of the WBGST/CST Act, 2017 (hereinafter referred to as the “said Act”) in respect of the tax period July 2017 to March 2022. Records would reveal that on the basis of an audit observation under Section 65 of the said Act, a proceeding under Section 74 was initiated by issuing a notice dated 1st August, 2024 in the Form DRC-01. From the show cause it would transpire that the proposed demand has been made on the following heads:-
2.2. Irregular availement of ITC (Block Credit) against the invoices related to purchase/repair and maintenance of motor vehicles in violation of Section 17 (5) of CGST Act, 2017:-
2.4. Excess availme
Petitioner must substantiate claims of timely payments for input tax credit; authority's findings upheld due to lack of evidence.
The court held that the provisions enabling the denial of Input Tax Credit are within jurisdiction, emphasizing the need for statutory adherence in taxation disputes.
The court ruled that retroactive tax demands must be supported by appropriate show cause notices as per statutory requirements; failure to issue such notices invalidates new assessments.
The denial of Input Tax Credit requires verification of the supplier's tax payment, and unilateral action against the recipient without such verification is arbitrary.
Show-cause notices under Sections 73 and 74 of the WBGST/CGST Act can coexist for the same tax period if based on distinct grounds, and petitioners must pursue available appellate remedies before see....
A writ petition against a GST demand is not maintainable when an alternative remedy of appeal is available under Section 107 of the GST Act.
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