GST Vidhi | GST Case Law

Summary Details: M/s Suburban Industrial Works Pvt. Ltd. Vs.  The Assistant Commissioner, Bhowanipur Division, CGST & CX, Kolkata South Commissionerate & Ors.

Case Number: W.P.A. 20453 of 2024

Date of Order: 10th September 2024

Name of Court: High Court of Calcutta

Presiding Judge: Honourable Mr. Justice Raja Basu Chowdhury

Summary of the Case:

The petitioner, Suburban Industrial Works Pvt. Ltd., challenged an order dated 26th April 2024 passed by the proper officer under Section 73(9) of the West Bengal Goods and Services Tax (WBGST) and Central Goods and Services Tax (CGST) Acts, 2017. The petitioner argued that, following an amendment to Section 16(5) of the CGST Act, the impugned order was no longer valid. The petitioner sought relief from the tax demand for the financial period 2018-19 and requested a stay on the enforcement of the order until the matter was resolved.

Facts of the Case:

·        The petitioner was served with a show cause notice alleging default in filing returns within the prescribed period.

·        The petitioner submitted that the returns were filed on 12th February 2020, well within the timeframe allowed under the newly inserted sub-Section (5) of Section 16 of the CGST Act.

·        The petitioner relied on the amendment notified on 16th August 2024, which allowed input tax credit to be claimed in respect of invoices from financial years 2017-18 to 2020-21 if returns were filed by November 2021.

·        The respondent CGST authorities noted that while the CGST Act had been amended, the corresponding changes had not been made to the WBGST Act.

Submissions by the Petitioner:

·        The petitioner, represented by Ms. Aritra Chakraborty, argued that the impugned order could not stand because of the amendment to Section 16(5) of the CGST Act.

·        It was claimed that the returns were filed within the permissible window, making the tax demand invalid.

Submissions by the Respondents:

·        The respondent, represented by Mr. Koushik Dey, acknowledged the amendment to the CGST Act but pointed out that the WBGST Act had not been similarly updated.

·        The respondent sought time to take further instructions in light of the discrepancy between the two acts.

Findings and Judgment of the Court:

·        The court noted that the petitioner made a prima facie case based on the recent amendment to Section 16(5) of the CGST Act.

·        Given the petitioner's arguments and the amendment's impact, the court decided to stay the order dated 26th April 2024, which was the subject of the writ petition.

·        The case was adjourned to be listed for further hearing in December 2024.

Conclusion: The court stayed the enforcement of the April 2024 order, granting temporary relief to the petitioner while the case remains under consideration. The decision emphasized the impact of the recent amendment to the CGST Act, although the WBGST Act's status remained unresolved at the time of the order.

 Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.