Sagar Ghosh Vs Deputy Commissioner (Calcutta High Court)
The Calcutta High Court entertained a writ petition challenging an adjudication order dated 13 March 2024, an appellate order dated 20 March 2025 and consequential recovery proceedings concerning reversal of ITC under Section 74 of the WBGST/CGST Act, 2017. An enforcement case had been initiated against the petitioner in January 2021, followed by proceedings concerning the genuineness and eligibility of ITC claimed from five suppliers. The adjudicating authority held the ITC ineligible and directed reversal with interest and penalty. The petitioner’s appeal under Section 107 was dismissed as it was filed electronically beyond the stipulated period.
Before the High Court, the petitioner principally questioned the jurisdiction and competence of the State Tax authority to initiate and adjudicate the proceedings, contending that the petitioner was administratively assigned to Central Tax authorities and that the officer posted in the Bureau of Investigation had enforcement and investigation powers but lacked adjudication jurisdiction. The petitioner also raised the issue of cross-empowerment under Section 6 of the GST enactments.
The respondents opposed the writ petition on the ground of an alternative remedy under Section 112 before the GST Appellate Tribunal and contended that cross-empowerment was automatic. The Court noted that different High Courts had expressed divergent views on cross-empowerment.
