Case Law Details
Larsen & Toubro Limited Vs State of West Bengal & Ors. (Calcutta High Court)
Introduction: The case of Larsen & Toubro Limited Vs State of West Bengal & Ors., heard by the Calcutta High Court, involves a dispute concerning the imposition of interest under Section 50 of the WBGST Act, 2017. This article delves into the details of the case and the court’s ruling on the matter.
Detailed Analysis: The petitioner, Larsen & Toubro Limited, challenged a communication dated May 2, 2018, wherein they were asked to pay interest under Section 50 of the WBGST Act, 2017. The basis for the interest claim was the alleged wrongful claim of Input Tax Credit (ITC) amounting to Rs. 18,36,39,830/-. However, the petitioner contended that they had not utilized the ITC and had reversed the same, thereby negating their liability for interest payment.
The petitioner argued that, according to the amended provisions of Section 50(3) of the WBGST Act, 2017, they were not liable to pay interest retrospectively from July 1, 2017, if the ITC had not been utilized.
Upon consideration of the submissions and legal provisions, the Calcutta High Court ruled in favor of the petitioner. The court noted that since the ITC had not been utilized and had been reversed, the petitioner was not liable to pay interest as per the impugned communication. The court also emphasized the significance of the amended provisions of Section 50(3) of the WBGST Act, 2017, in reaching its decision.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
