N C Print Private Limited And Another vs. State Of West Bengal And Ors..

Facts

The petitioners, N C Print Private Limited & Anr., filed a writ petition challenging an order dated June 16, 2023, passed under Section 107 of the WBGST/CGST Act, 2017. This order arose from an earlier order dated August 25, 2022, passed under Section 74 of the said Act, concerning the tax period of February 2019 to March 2019. The primary ground for the writ petition was the non-constitution of the appellate tribunal at that time. This Court, by an order dated September 20, 2023, entertained the writ petition due to the unavailability of the tribunal and conditionally restrained coercive steps upon the petitioner depositing 20% of the disputed tax amount. The petitioners have since complied with this condition, albeit marginally belatedly. The interim order has been extended periodically, and the respondents have not yet filed their opposition. The matter has now come up for extension of the interim order.

Held

The Court held that it would be prudent to permit the petitioners to approach the appellate tribunal, given that the tribunal has now been constituted and is accepting filings. The Court noted that the time to file an appeal for orders passed before April 1, 2026, has been extended until June 30, 2026, by virtue of a notification dated September 17, 2025. The Court directed that if the petitioners file an appeal within this extended period, the appellate authority shall hear and dispose of the appeal on its merits without demanding any further pre-deposit. The petitioners will be entitled to the benefit of the 20% tax amount already deposited. The respondents are restrained from taking any coercive action against the petitioners until the expiry of the period mentioned in the notification dated September 17, 2025. If the appeal is filed, all legal consequences shall follow. The Court did not expressly leave any issue undecided, but the primary focus was on directing the petitioner to the appellate tribunal.

Key Issues

1. Whether the writ petition is maintainable in light of the subsequent constitution of the appellate tribunal under the said Act, given that the original challenge was predicated on its non-constitution? (Question of law). Petitioner's contention: The petitioner argues that the writ petition was maintainable when filed due to the absence of the appellate tribunal, and the subsequent constitution of the tribunal should not prejudice their case, especially since they have complied with the interim directions. They rely on the principle that a proceeding validly initiated remains valid. Revenue/State's contention: The State contends that with the constitution of the appellate tribunal, the statutory remedy of appeal is now available, and therefore, the writ petition should be dismissed or relegated to the tribunal. They likely argue that the High Court should not exercise its writ jurisdiction when an efficacious alternative remedy exists. The judgment does not explicitly record arguments from the State regarding specific provisions or precedents.