Jagannath Heights Private Limited And Anr. vs. Joint Comissioner, State Tax, Park Street And Ors.
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The petitioners, Jagannath Heights Private Limited and another, challenged proceedings initiated under Section 73 of the West Bengal Goods and Services Tax Act, 2017, culminating in an order dated December 20, 2023. The petitioners argued that a determination had already been made by the Joint Commissioner, CGST & CX, Kolkata South Commissionerate, for the tax period September 2017 to March 2021 (though wrongly mentioned as April 2020 to March 2021 in that order). Despite this, the State authorities initiated fresh proceedings for the tax period July 2017 to March 2018, leading to the impugned order. The petitioners contended that the State's determination overlapped with the Central authorities' determination and thus the subsequent State order was unsustainable.
Held
The Court held that the State authorities did not intend to enforce the order dated December 20, 2023, to the extent that the determination made by the State authorities overlapped with the determination already made by the Central authorities. This decision was taken in consonance with the provisions of Section 6(2)(b) of the West Bengal Goods and Services Tax Act, 2017. The reasoning was based on the written instructions provided by the State authorities, which were taken on record. The Court found that since the State did not wish to pursue the determination made via the order dated December 20, 2023, that order should be set aside. The Court explicitly stated that the order was passed based on the written instructions from the State authorities. As a consequence, nothing survived in the present petition, and it was disposed of accordingly. No issue was expressly left undecided.
Key Issues
1. Whether the order dated December 20, 2023, passed by the Joint Commissioner, State Tax, Park Street, under Section 73 of the West Bengal Goods and Services Tax Act, 2017, is sustainable when a prior determination for overlapping periods was made by the Central authorities? Petitioner's Contention: The petitioners argued that the determination made by the State authorities overlapped with the determination previously made by the Central Authorities for the tax period September 2017 to March 2021. They relied on the order dated November 22, 2023, passed by the Joint Commissioner, CGST & CX, Kolkata South Commissionerate, and contended that the subsequent order by the State authorities could not be sustained due to this overlap. Revenue's Contention: The State submitted that since the issue of reversibility of ITC availed in violation of Section 16(4) of the said Act was adjudicated by the Joint Commissioner, Central Tax, CGST & CX, Kolkata South Commissionerate, by an order dated November 22, 2023, and the Joint Commissioner, State Tax, Kolkata, had issued the order dated December 20, 2023, on the same premise, the State authorities did not intend to enforce the order dated December 20, 2023, to the extent of the overlap. They stated this decision was taken in consonance with Section 6(2)(b) of the said Act.
Sections Cited
Section 73, Section 16(4), Section 6(2)(b)
AI-generated summary — verify with the full judgment below
20th June, 2024 (AK) 30 …for the petitioners.
Mr. Anirban Ray Mr. T.M. Siddiqui Mr. Tanoy Chakraborty Mr. Saptak Sanyal …for the State.
Mr. Kaushik Dey Mr. Sujit Mitra …for the respondent nos.2, 3 & 5. 1. Affidavit-of-service filed in court today be kept on record.
Challenging the initiation of proceedings under Section 73 of the West Bengal Goods and Services Tax Act, 2017 (hereinafter referred to as the “said Act”), including the order dated 20th December, 2023 passed thereon, the present writ petition has been filed.
Mr. Chakraborty, learned Advocate representing the petitioners by drawing attention of this Court to the order dated 22nd November, 2023 passed by the Joint Commissioner, CGST & CX, Kolkata South
2 Commissionarate submits that in respect of the tax period September 2017 to March 2021 issued in the Form GST DRC-01, (tax period is wrongly mentioned therein as April 2020 to March 2021), a determination has already been made. Notwithstanding the aforesaid, a fresh proceeding had been initiated in respect of the tax period July 2017 to March 2018 by the respondent no.1 by invoking the provisions of Section 73 of the said Act. The same has ultimately culminated in the order dated 20th December, 2023. 4. It is submitted that the determination made by the State authorities overlap on the determination made by the Central Authorities and to the extent as aforesaid the subsequent order passed by the State Authorities cannot be sustained.
Mr. Siddiqui, learned advocate enters appearance on behalf of the State and by placing before this Court the copy of the written instructions which is taken on record, submits that since, the issue as regards reversibility of ITC availed in violation of the provisions of Section 16(4) of the said Act was adjudicated upon by the Joint Commissioner, Central Tax, CGST & CX, Kolkata South Commissionerate by issuing an order in original dated 22nd November, 2023 and since, on the same
3 premise the Joint Commissioner, State Tax, Kolkata had issued the order dated 20th December, 2023, the State authorities do not intend to enforce the order dated 20th December, 2023 to the extent the determination made by the State authorities over laps with the determination already made by the Central authorities. The above decision has been taken in consonance with the provisions of Section 6(2)(b) of the said Act.
Having regard to the above and since, State does not want to pursue with the determination made vide order dated 20th December, 2023, let the aforesaid order dated 20th December, 2023 be set aside.
It is made clear that the aforesaid order is passed on the basis of the written instructions issued by the State authorities which has already been retained with the record.
Since, nothing survive in the present petition, the same
accordingly stands disposed of.
There shall be no order as to costs.
All parties shall act on the basis of server copy of this order duly downloaded from this Court’s official website.
(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.