Calcutta HC Cancels GST Order for Violating Natural Justice Principle

A West Bengal Goods and Service Tax (GST) judgment was rejected by the High Court of Calcutta for violating the Natural Justice Principle.

The petitioner, M/s. Gayatri Projects Limited contested the ruling in which the Single Bench ordered affidavits to be filed and declined to issue any interim orders till the disposal of the writ petition.

Ankit Kanodia, an advocate, represented the appellants, Debasish Ghosh, a government attorney, represented the State, and Rajeev Agarwal, an attorney, represented respondent no 4.

The West Bengal Authority for Advance Ruling Goods and Services Tax, Kolkata, issued the order that is being appealed in the writ petition, ruling that Eastern Coalfields Limited, the applicant, 4th respondent, is not authorized to the ITC that it sought on the appellants’ invoices for the months of January 2020, February 2020, and March 2020, for which the supplier had submitted Forms GSTR 1 and GSTR 3B in November 2020.

Eastern Coalfields Limited, the respondent, was obliged to reverse the aforementioned input tax credit. Even though the 4th respondent’s claim for an input tax credit related to the invoices submitted by the appellants, the appellants were not given a hearing by the authority because they were not included as parties to the mentioned application.

The petitioner contested that the non-payment of the GST amount levied via the 4th respondent to the appellants is a breach of Article 19(1)(g) and 300A of the Constitution of India and against the provisions of the CGST and WBGST Act, 2017.

Also argued that the authority reached its judgment based on the fact that too much credit had been availed without first evaluating how much credit was actually available based on uploaded invoices; a 10% statutory limit to be calculated for claiming the credit referred to invoices not uploaded; The Court held that the appellants could not be declared ineligible by a decision that was made by the authority without consulting them.

Read Also: HC Decides to Not Consider GSTN Cancellation Order Without Any Violation

Further noted that ordering the appellants to prefer an appeal to the appellate authority may not be effective since the facts the appellants seek to add to the record were not included in the records before the original authority. The appellants have argued that insufficient factual details were not presented to the authority.

Instead of instructing the appellants to contact the appellate authority, a two-member bench made up of Justice T. S. Sivagnanam and Justice Hiranmay Bhattacharyya noted that the subject must be reevaluated by the authority itself. The Court authorized the writ petition by setting aside the impugned order and the case was remanded back to the 5th respondent for newer deliberation.

Case TitleM/s. Gayatri Projects Limited & Anr Vs The Assistant Commissioner of State Tax
CitationM.A.T No.2027 of 2022
with
I.A. No.CAN 1 of 2022
Date05.01.2023
Appellant ByMr Ankit Kanodia, Ms Megha Agarwal & Ms Payal Shaw
Respondent ByMr. T. M. Siddique, ld. A.G.P., Mr. Debasish Ghosh & Mr. Nilotpal Chatterjee
Calcutta HCRead Order
Arpit Kulshrestha

Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous.

Recent Posts

No GST Returns Will Be Accepted If Filed More Than 3 Years Past Their Due Date

An advisory has been released by the Goods and Services Tax Network (GSTN) which notifies…

6 hours ago

Delhi HC: Two Judgment Orders Against One SCN Cannot Be Accepted for the Same Period

It was cited by the Delhi HC that the two adjudication orders against one SCN…

8 hours ago

CBDT Allows Electronic Filing of Forms 3CEDA and 3C-O Via Notification No. 5/2024

The Central Board of Direct Taxes (CBDT) in an update for the taxpayers via the…

9 hours ago

October 2024 Records the 2nd Highest GST Collection, Driven by Domestic Sales

In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second…

11 hours ago

UP AAR: GST Will Be Levied on the Installation of Electricity Distribution Systems by DISCOMs

Goods and Services Tax (GST) is to get paid on the procurement of materials and…

2 days ago

Bombay HC Quashes Rejection Order for Voluntary GST Cancellation Due to Lack of Stated Reasons

The Bombay High Court carried that as the revocation orders for the registration cancellation on…

3 days ago