GST Update

Desk of CA. Praveen Sharma – 863 Series (CAPS)

Calcutta High Court in the case of Stores Cement through its partner Saugata Sarkar

Case Background:

The petitioner, a distributor, challenged an Order-in-Original dated 19.11.2024 under Section 74 of the WBGST Act for FY 2022–23, alleging the order was based on an illegal inspection under Section 67(1) without “reasons to believe” or proper authorization under Rule 139.

Petitioner’s Claims:

• The inspection report was prepared during the search itself, showing lack of prior “reasons to believe.”

• Relied-upon documents were not shared, violating natural justice.

• A writ was filed citing procedural irregularities despite having an appeal remedy under Section 107.

Court’s Findings on Limitation:

• The Order-in-Original was appealable within 3 months (plus 1 month condonable) under Section 107.

• The writ, filed on 25.08.2025, was beyond this limit and thus barred by time.

Delay Justification Rejected:

• The plea of delay due to the petitioner’s father’s illness was not backed by any documentary proof.

On Non-Supply of Documents:

• The petitioner participated in adjudication without objection and never sought the documents earlier; thus, the plea of natural justice violation was dismissed.

Maintainability:

• The Court held that factual disputes or appealable orders cannot be re-examined under Article 226 once the appeal period has lapsed.

Limited Relief Granted:

• Considering time spent in writ proceedings, the Court allowed filing of an appeal within 30 days of receiving the order.

• The appellate authority shall not reject it on limitation but ensure pre-deposit under Section 107(6).
  
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