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 along with applicable interest in full by 23/08/2023, failing which Show Cause Notice shall be issued under section 74(1)”.

c. On October 06, 2023, the petitioner furnished a detailed reply to the said intimation/notice dated August 16, 2023.

d. The respondent no.1 was not satisfied with the petitioner’s response to the intimation and as such on December 26, 2023 the said respondent issued show cause notice thereby demanding the entire tax as mentioned in DRC-01A for availing an ITC from non-existent suppliers.

e. The petitioner furnished a detailed reply dated February 26, 2024 to the said notice dated December 26, 2023.

f. The respondent no.1 was not satisfied with the petitioner’s response to the notice to show cause and as such on July 10, 2024 the said respondent passed an adjudication order, holding the petitioner liable to pay tax, interest and penalty as indicated therein.

g. Assailing the said show cause notice, the petitioners approached this Court by filing W.P.A. No. 23741 of 2024 which was dismissed by an order dated November 11, 2024.

h. The petitioners carried the matter in appeal being M.A.T. No. 2100 of 2024. The said appeal was allowed by an order dated January 14, 2025 thereby setting aside the adjudication order and remanding the mater back to the adjudicating authority for fresh adjudication on merits.

i. Upon the appellate order being communicated to the respondents, the respondent no.1 issued a notice in FORM GST DRC-01A in terms of Rule 142 (1A) of the said Act of 2017 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 and it also indicated that the same had been issued in connection with “De Novo adjudication proceedings in compliance to the order of the Hon'ble Division Bench of Calcutta High Court in MAT/2100/2024 & IA No. CAN/1/2024, order dated 14.01.2025”. The petitioner was thereby advised to “pay the amount of Tax (CGST: Rs. 20,29,250.00 and SGST : Rs. 20,29,250.00) as ascertained above along with applicable interest and penalty @15% of such tax in full by 23/04/2025, failing which Show Cause Notice shall be issued under section 74(1)”.

j. The petitioner replied to it on April 23, 2025.

k. Upon considering the petitioner’s aforesaid reply, the respondent no.1 issued a notice to the petitioner on June 18, 2025, calling upon the petitioner to show cause as why should it not be held liable to make payment of tax, interest and penalty as indicated in the said notice. The said notice records a prima facie satisfaction that input tax credit (hereafter ITC) had been wrongly availed or utilised by reason of fraud, or wilful misstatement or suppressio