Calcutta HC Reverses Order U/S 74 as GST Notice Uploaded in Other Portal

The Calcutta High Court overruled the order under Section 74 of the West Bengal Goods and Services Tax (WB GST) Act, 2017. The order was passed on the GST show cause notice which was uploaded by the department in a different portal not concerning to the assessee.

The appeal opposing the order passed in the writ petition which was rejected by a Single Bench was filed by Prabhu Dayal Jajoo. The orders impugned in the writ petition were the orders passed under Section 74 of the WB GST Act.

The Single Bench observed that the writ petition was filed well after the time limit for filing an appeal, and even beyond the extendable period. The court refused to intervene with the order made under Section 74 of the Act. The Writ Court, in dismissing the writ petition, stated that the appellant can still utilise the legal remedy provided by the Act. The primary reason for the order made under Section 74 of the Act was the violation of the principles of natural justice.

The appellant contended that the department uploaded the show cause notice in a different portal which was not concerned to the appellant. Even the show cause notice is also lacking the particulars. As a result, it is submitted that the act of starting the proceedings is unlawful. Even though the decisions in question in the writ suit were given in March 2022, the notices for recovery were only sent in March 2023.

Mr. T.M. Siddique, the State’s counsel, strongly contended that the appellant’s lawyer’s claim is incorrect and that the assessee was provided with all the necessary information. A two-judge bench consisting of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya viewed that the appellant can be allowed to file a statutory appeal, especially since the tax department has already recovered certain amounts from the electronic cash ledger.

The Court disposed of the appeal by instructing the appellant to file a statutory appeal before the first appellate authority. If the appeal is filed within 15 days from the date of receipt of the official copy of the order, it will be considered valid without being rejected due to any time limitations.

Read also: HC Revokes SCN Under GST Section 74(1) Due to Rule 142(1)(a) Violation

The Court in its ruling said, “The pre-deposit amounts which the appellant have to make shall be adjusted from and out of the amount already recovered from the appellant by way of recovery from the electronic cash ledger, the balance amount which was recovered from the appellant shall abide by the orders that may be passed by the appellate authority in the appeal to be filed by the appellant in terms of the above direction. If the appellant files a statutory appeal within the period stipulated by this order, the attachment of the appellant’s bank account shall be lifted”.