GST Update

Desk of CA Praveen Sharma – 909 Series (CAPS)

Calcutta High Court in the case of Tirupati Traders

The High Court noted the affidavit of service filed by the petitioners and proceeded to hear the matter.

The writ petition challenged an adjudication order dated 12 December 2023 passed under GST law.

The petitioners contended that the order violated principles of natural justice as their written reply was not considered and no personal hearing was granted.

They also argued that the adjudicating authority applied an incorrect legal provision and that a rectification application filed by them is still pending.

Despite the pending rectification application, the department initiated recovery proceedings by debiting amounts from the electronic credit ledger.

The tax department opposed the writ petition on the ground that an alternate appellate remedy was available and that there was delay in approaching the Court.

The Court observed that since the rectification application is pending and may impact the validity of the demand, it should be decided at the earliest.

Accordingly, the Court directed the proper officer to dispose of the rectification application within four weeks and stayed further recovery during this period, subject to verification that more than 20% of the disputed tax has already been recovered.

The Court clarified that it has not expressed any view on merits, allowed the petitioners to file an additional representation, and disposed of the writ petition without any order as to costs.

LINK: CA. Praveen Sharma on Linkedin

Regards

CAPS