M/S. Kalyani Udyog And Anr. vs. State Of West Bengal And Ors.
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The petitioners, M/s. Kalyani Udyog & Anr., challenged a notice issued under Section 79(1)(c) of the CGST/WBGST Act, 2017. The notice, in Form GSTDRC-13 dated 12th March, 2024, was issued for recovery of an amount determined by an order passed under Section 74 of the said Act dated 24th August, 2023, for the tax period April, 2022 to March, 2023. The total recoverable amount was stated to be Rs.8,28,398/-. The State submitted that Rs.8,28,398/- had been recovered partly based on the notice and partly from the electronic credit ledger. Respondent nos. 5 and 6 also communicated that Rs.8,13,010/- had been recovered from the taxpayer.
Held
The Court held that the notice issued in Form GSTDRC-13 dated 12th March, 2024, could not be permitted to continue further, considering the submissions made regarding the recovery of amounts. Consequently, the notice dated 12th March, 2024, issued under Section 79(1)(c) of the said Act, was quashed. The Court further observed that if the petitioners had paid an excess amount beyond the determination made by the respondents, they would be at liberty to apply for a refund of such excess amount. The appropriate authority was directed to decide any such refund application on its merits, without being influenced by any observations made in the judgment, within a period of 8 weeks from the date of filing.
Key Issues
1. Whether the notice issued in Form GSTDRC-13 dated 12th March, 2024, under Section 79(1)(c) of the CGST/WBGST Act, 2017, can be permitted to continue, given the submissions regarding recovery. Petitioner's contention: The petitioners argued that an excess amount had been recovered beyond the determination made by the respondents and sought liberty to apply for a refund of any such excess amount. Revenue/State's contention: The State submitted that a sum of Rs.8,28,398/- had already been recovered, partly based on the notice and partly from the electronic credit ledger. Respondent nos. 5 and 6 also indicated that Rs.8,13,010/- had been recovered from the taxpayer. The State did not explicitly argue against the quashing of the notice but presented facts regarding recovery.
Sections Cited
Section 74, Section 79(1)(c)
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18 29.08.2024 sb Ct 5
IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURI ICTION APPELLATE SIDE
WPA 17137 of 2024
M/s. Kalyani Udyog & Anr. Versus The State of West Bengal & Ors.
Mr. Tara Pada Das
Mr. Puspam Das
… For the petitioners.
Mr. Anirban Ray, Ld.GP
Mr. T. M. Siddiqui
Mr. Tanoy Chakraborty
Mr. Saptak Sanyal
Mr. Nilotpal Chatterjee
… For the State.
Mr. Avra Mazumder
Ms. Alisha Das
Mr. Suman Bhowmik
Mr. Samrat Das
Ms. Elina Dey
Mr. Sourendra Nath Banerjee
… For the respondent nos. 5 & 6
Mr. Chakraborty, learned advocate appearing on behalf of the State respondents, on instruction, would submit that already a sum of Rs.8,28,398/- has been recovered partly on the basis of the notice issued in Form GSTDRC-13 dated 12th March, 2024 and partly from the electronic credit ledger.
Taking note of the aforesaid and the Form in GSTDRC-07 dated 24th August, 2023, it appears that the total recoverable amount in respect of the order passed under Section 74 of the CGST/WBGST Act, 2017 (hereinafter referred to as the “said Act”) dated 24th August, 2023, for the tax period April,
2 2022 to March, 2023 was Rs.8,28,398/- .
Mr. Mazumder, learned advocate appearing on behalf of the respondent nos. 5 and 6 has also placed before this Court a communication dated 22nd May, 2024, issued by the Assistant Commissioner of Revenue, addressed to the respondent no.5 intimating that a sum of Rs.8,13,010/- has already been recovered from the tax payer. Let a copy of the aforesaid communication dated 22nd May, 2024 be retained with the records.
Since, Form GSTDRC-13, records that a sum of Rs.8,13,010/- was due and payable from the petitioners for which the said notice had been issued, I am of the view that the aforesaid notice issued in Form GSTDRC-13 cannot be permitted to continue any further.
The notice dated 12th March, 2024, issued under Section 79(1)(c) of the said Act is quashed.
Since, it has been submitted on behalf of the petitioners that excess amount in excess of the determination made by the respondents has been recovered, the petitioners shall be at liberty to apply for refund of the amount recovered from them in
3 excess, if any.
If such application is made, the appropriate authority shall decide the same on merits without being influenced by any of the observation made hereinabove, within a period of 8 weeks from the date of filing such application.
With the above observations and directions, the writ petition is disposed of.
Urgent Photostat certified copy of this order, if applied for, be made available to the parties upon compliance of requisite formalities.
(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.