GST Update

Desk of CA. Praveen Sharma – 1104  Series (CAPS) 

 CALCUTTA HIGH COURT IN THE CASE OF Termico Engineers & Erectors Pvt. Ltd. v. Deputy Commissioner of Revenue, State Tax, Baharampur Charge & Ors.

Outcome: In favour of petitioner

Business activity: The company executes works contracts, including erection of prefabricated structures and construction projects.

 Alleged mismatch: Authorities alleged excess ITC of ?8,04,31,198.54 for FYs 2023–24, 2024–25 and 2025–26.

Documents furnished: The company submitted its reply, supporting documents and supplier particulars.

 Cancellation proceedings: A notice dated 22 May 2026 proposed cancellation and suspended registration retrospectively from 1 April 2023.

 Premature suspension: The Court found a prima facie case for interference before the disputed ITC had been finally examined. 

 Supplier-side action: Since supplier names were furnished, the Court emphasised the mechanism under Section 76(1) and (2) against persons liable to pay tax.

 Relevant precedents: The Court considered Suncraft Energy, D.Y. Beathel Enterprises and Shreyash Enterprises.

Relief granted: The cancellation show-cause notice and consequential suspension were quashed.

Fresh examination: A comprehensive reply under Section 61 read with Rule 99 was directed within three weeks, followed by a personal hearing and reasoned order.

 ITC merits remain open: The authority must decide independently; the judgment did not finally allow the disputed ITC.

LINK: CA. Praveen Sharma on Linkedin

Regards
CAPS