Nishant Ispat Private Limited & Anr. Vs State of West Bengal & Ors. (Calcutta High Court)
The petitioners challenged an appellate order dated July 28, 2025, passed under Section 107 of the WBGST/CGST Act, 2017, by which their appeal against an adjudication order dated February 5, 2025 under Section 74 was dismissed for failure to make the mandatory statutory pre-deposit. Their grievances were twofold: first, that the order dated February 5, 2025 should not have been issued because earlier proceedings based on the same show-cause notice had already been dropped; and second, that the appellate authority should not have insisted on any further pre-deposit since the GST authorities had already recovered the tax amount determined in the February 5, 2025 order even before the appeal was filed.
The petitioners relied on their electronic credit ledger, showing that a sum of ₹10,76,006 was recovered on March 14, 2023 on the basis of an adjudication order dated May 27, 2022, which was subsequently dropped on June 22, 2022. The State GST authorities, through instructions dated December 1, 2025, stated that due to a flaw in DRC-08 the demand remained unpaid, leading the recovery officer to initiate recovery proceedings and recover the entire tax amount from the petitioners’ electronic credit ledger. It was undisputed before the Court that more than 10% of the disputed tax had been recovered.
