Amar Iron Udyog Pvt. Ltd. & Anr. Vs Union of India & Ors. (Calcutta High Court)
The Calcutta High Court examined a writ petition challenging an appellate order passed under Section 107 of the CGST/WBGST Act, 2017, which had dismissed the petitioners’ appeal against an adjudication order under Section 73. The adjudication order alleged short payment of output tax and excess availment of Input Tax Credit (ITC), particularly in relation to imports and the non-filing of returns by suppliers.
A show cause notice under Section 73 had been issued alleging excess availment of ITC on import of goods and other discrepancies. After the petitioners submitted a reply, an adjudication order dated 30.04.2024 held them liable on several counts, including excess ITC on imports. This order was affirmed in appeal by the appellate authority on 21.04.2025. The appellate order, however, was passed ex parte.
Before the High Court, the petitioners confined their challenge to two issues: (i) excess availment of ITC on import of goods, and (ii) reversal of ITC on account of suppliers’ failure to file returns. With respect to imports, it was argued that the finding of excess ITC was based solely on non-production of certified documents evidencing payment of IGST to the customs authorities. It was further contended that ITC could not be reversed merely because suppliers failed to file returns. The petitioners also pointed out that they had missed the opportunity of hearing before the appellate authority, resulting in an ex parte order.
