The Calcutta High Court has granted interim relief in a challenge to a time-barred demand made under Section 73 of the West Bengal Goods and Services Tax Act, 2017 (WB GST Act), by temporarily halting the recovery process and directing the deposit of 10% of the disputed tax amount so that it may fully consider the writ petition.
M/s. Prakriti Eminent Height LLP had filed a petition against an order dismissing its statutory appeal against an adjudication order under section 73 of the WB GST Act for the tax period 2018-19, after the expiry of the limitation period of 3 years for submitting returns.
Despite the lapse of the limitation period, the adjudication authority issued the order for the notifications issued by the Government of West Bengal, as well as the Central Board of Indirect Taxes and Customs, purportedly extending the limitation period. The adjudication order has been kept by the appellate authority, encouraging the applicant to seek redress from the High Court.
The representative of the applicant, Advocates Indranil Banerjee and Subhajit Ray, said that the filing of charges u/s 73 of the WB GST Act, 2017, was passed after the expiration of the statutory time limit, rendering it ex facie illegal.
They cited that it was inappropriate to use Notification No. 13/2022-CT issued on the 5.06.2022 and Notification No. 1389-FT dated on the 23r.08.2022 as authority u/s 168A of the WB GST Act, which can only be used if there were force majeure extraordinary circumstances to justify their application.
Since, at the time of issuance of the said notifications, no force majeure situation existed, therefore rendering the extension of limitation invalid in law.
N. Chatterjee, Tanoy Chakraborty, and Saptak Sanyal represented the State authorities, and Prithu Dudhoria represented the Union of India. The respondents asked for time to file affidavits and defended the impugned orders based on the issued notifications via the competent authorities, claiming that the proceedings had been lawfully continued as per the extended timelines.
Justice Om Narayan Rai of the Calcutta High Court considered the writ petition after prima facie acknowledging the challenge to the validity of the proceedings initiated after the limitation period. The bench provided interim protection by directing that if the applicant deposits a sum of 10% of the balance tax in dispute u/s 112(8) of the WB GST Act, 2017, within 2 weeks.
The GST authorities are prohibited from recovering any amounts related to the adjudication order dated May 2, 2023, and the appellate order dated August 2, 2024, until further notice.
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Additionally, the Court clarified that upon making such a deposit, the recovery notice issued on July 21, 2025, will also remain in effect.
| Case Title | M/s. Prakriti Eminent Height LLP vs. Senior Joint Commissioner of Revenue & Ors |
| Case No. | WPA 12112 of 2025 |
| For the Petitioner | Mr Indranil Banerjee, Mr Subhajit Ray |
| For the Respondent | Mr N. Chatterjee, Mr Tanoy Chakraborty, Mr Saptak Sanyal |
| Calcutta High Court | Read Order |
