GST Update

 Desk of CA. Praveen Sharma – 932 Series (CAPS) 

Calcutta High Court in the case of Shine Pharmaceuticals Ltd.

The Calcutta High Court recently dealt with a writ petition filed by Shine Pharmaceuticals Ltd., challenging an appellate order dated 28 March 2025 passed under the GST laws. The original proceedings had started with a show cause notice alleging excess Input Tax Credit (ITC), reversible ITC, and short payment of outward tax. As the petitioner did not respond to the notice, the Proper Officer passed an order confirming the demand on all grounds.

On appeal, partial relief was granted. The appellate authority provided relief in respect of short tax payment and excess ITC, but maintained the direction for reversal of ITC.

Before the High Court, the petitioner submitted that the required ITC had already been reversed in the GST returns and even an additional amount was reversed. The State argued that these details were not properly presented earlier and that since the show cause notice went unanswered, there was no need for interference.

The Court observed that the relevant data was available on the GST portal and should have been properly examined by the authorities. Finding that the matter was not adequately considered, the Court set aside both the adjudication and appellate orders. The case was remanded for fresh consideration with an opportunity of hearing, recovery proceedings were stayed, and the petitioner was granted two weeks to file a reply.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS