GST Update

 Desk of CA. Praveen Sharma – 826 Series (CAPS) 

CALCUTTA HIGH COURT IN THE CASE OF Murshidabad Flour Mill Private Limited

1– Appeal Background – Petitioners challenged the Single Bench order (25.06.2025) which refused interim relief but asked the Department to file affidavits.

2 – Payment Under Protest  – During DGGI probe, petitioners deposited ?5.50 Cr via DRC-03 on 03.12.2020, claiming it was forced.

3– Key Issue Raised  – Whether Sec. 74 invocation for alleged suppression was justified; prima facie Court observed it wasn’t clearly made out.

4 – Govt. Notification Impact  – WB PDS Guidelines (2017 & 2018) restrict flour mills from private milling; question arises if central tax authorities can disregard state notifications.

5 – Price Structure Accepted – Adjudicating officer admitted the notified price mechanism was followed; still, demand of ?8.73 Cr + penalty imposed.

6 – Court’s Interim View  – Since over 50% of tax was already recovered, the ?5.50 Cr will be treated as deposit till writ is decided; revenue’s interest protected.

7 – Relief Granted  – No further recovery allowed; remaining demand stayed until final disposal of writ.

8 – Next Steps  – Affidavit timelines extended; matter listed for 28.11.2025 before appropriate bench.

Link: CA. Praveen Sharma on Linkedin

Regards

CAPS