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IN THE HIGH COURT AT CALCUTTA
OM NARAYAN RAI
Jyoti Tar Products Private Limited – Appellant
Versus
Deputy Commissioner, State Tax, Shibpur Charge, WBGST – Respondent
JUDGMENT :
Om Narayan Rai, J.
1. The instant writ petition and the connected application being CAN 1 of 2025 together assail a notice to show cause dated June 18, 2025 under Section 74 of the West Bengal Goods and Services Tax Act, 2017 (hereafter “the said Act of 2017”) and an adjudication order dated November 04, 2025 passed thereafter.
FACTS OF THE CASE:
2. The relevant facts leading to the institution of the writ petition and the application need to be noticed first:-
a. The petitioners claim to be engaged in the business of trading in crude tar and other allied products.
b. A notice dated August 16, 2023 was issued by the respondent no.1 to the petitioner no.1 (hereafter “the petitioner”) in FORM GST DRC-01A in terms of Rule 142 (1A) of the West Bengal Goods and Services Tax Rules, 2017 (hereafter “the Rules”) thereby intimating the petitioner about the tax ascertained as being payable by it under Section 74(5) of the said Act of 2017. The said notice was accompanied by an annexure containing the relevant factual summary pertaining to the said case whereby the petitioner was advised to “pay the amount of Tax (CGST: Rs.20,29,250.00 and SGST : Rs.20,29,250.00) as ascertained above alo
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.
Transactional value under Section 15 of the GST Act must be the decisive element for tax liability, and arbitrary assumptions regarding pricing or profit margins are impermissible.
The main legal point established in the judgment is the mandatory and imperative nature of the show cause notice requirement under Section 74(1) of the JGST Act and the need for specific charges in t....
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