Chamong Tee Exports P LTD And Anr vs. The Deputy Commissioner Of State Tax, Large Taxpayer Unit_Wbgst And Ors.
Original PDF →Facts
The petitioner, Chamong Tee Exports Pvt. Ltd. & Anr., filed a writ petition challenging a demand raised in an order passed under Section 73 of the WBGST/CGST Act, 2017, issued in Form GST DRC-07 dated 23rd March, 2024. The petitioner's counsel drew the Court's attention to the West Bengal Goods and Services Tax (Amendment) Act, 2024, notified on 10th January, 2025. This amendment inserted Section 128(A) into the Act, providing for waiver of interest and penalty for the period 1st July, 2017 to 31st March, 2020, concerning notices/orders under Section 73(1) or Section 107, provided the entire tax amount determined is paid. The petitioner stated that the entire tax had been paid.
Held
The Court, without delving into the merits of whether the petitioner had indeed paid the entire tax amount, allowed the petitioner's request to withdraw the writ petition. The Court noted that the petitioner sought to avail the benefit of waiver of interest and penalty as introduced by Section 128(A) of the West Bengal Goods and Services Tax (Amendment) Act, 2024. The ratio decidendi is that a taxpayer seeking to avail a statutory waiver provision, upon payment of the requisite tax, can withdraw their challenge to a demand order to benefit from such waiver, without the Court adjudicating the underlying dispute. The operative direction was to dismiss the writ petition as withdrawn, allowing the petitioner to pursue the waiver. The interim order dated 15th July, 2024, was vacated.
Key Issues
1. Whether the petitioner is entitled to the waiver of interest and penalty under Section 128(A) of the West Bengal Goods and Services Tax (Amendment) Act, 2024, for the period 1st July, 2017 to 31st March, 2020, given that the entire tax amount determined has been paid. Petitioner's contention: The petitioner argued that by virtue of the newly inserted Section 128(A) of the West Bengal Goods and Services Tax (Amendment) Act, 2024, they are eligible for a waiver of interest and penalty. They asserted that they have already paid the entire tax amount as determined, fulfilling the condition stipulated in the amendment for availing this waiver. They sought liberty to withdraw the writ petition to avail this benefit. Revenue's contention: The judgment does not record any specific arguments from the State/Revenue.
Sections Cited
Section 73, Section 107, Section 128(A)
AI-generated summary — verify with the full judgment below
D/L - 13 27.02.2025 Court. No. 5
S.Kundu
WPA 11520 of 2024
Chamong Tee Exports Pvt. Ltd. & Anr. Vs. The Deputy Commissioner of State Tax & Ors.
Mr. Ankit Kanodia, Ms. Megha Agarwal, Ms. Tulika Roy, Mr. Piyush Khaitan …for the petitioners.
Mr. A. Roy, Mr. T.M. Siddiqui, Mr. T. Chakraborty, Mr. S. Sanyal, Mr. D. Sahu …for the State.
Challenging the demand raised in order passed under Section 73 of the WBGST/CGST Act, 2017 issued in Form GST DRC-07 dated 23rd March, 2024, the instant writ petition has been filed.
Ms. Agarwal, learned advocate appearing in support of the application by drawing attention of this Court to the West Bengal Goods and Services Tax (Amendment) Act, 2024 notified in the Kolkata Gazette on 10th January, 2025 would submit that by the aforesaid amendment, Section 128(A) has been inserted to the said Act whereunder interest and penalty pertaining to the period 1st July, 2017 to 31st March, 2020 has been waived in respect of a notice/order issued under Section 73(1) or under Section 107 of the said Act
2 provided the entire amount of tax as determined is paid. According to her, the petitioner has already paid the entire tax.
Having regard thereto, he seeks liberty to withdraw the writ petition to take benefit of waiver of interest and penalty as introduced vide Section 128(A) of the said Act.
Having regard to the above and without going into the issue as the whether the entire tax has been paid by the petitioner, the writ petition stands dismissed as withdrawn for the petitioner to take the benefit of waiver of interest and penalty in terms of Section 128(A) of the said Act.
The interim order passed by this Court on 15th July, 2024, accordingly stands vacated.
(Raja Basu Chowdhury, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.