Gopal Samanta Vs Union of India & Ors. (Calcutta High Court)
In the case of Gopal Samanta vs. Union of India & Ors., the Calcutta High Court addressed the validity of notifications extending the time limit for tax recovery under Section 73(9) of the WBGST/CGST Act, 2017. The petitioner, represented by advocate Ray, challenged the notifications issued by the Central Board of Indirect Taxes and Customs on July 5, 2022, March 31, 2023, and December 28, 2023, arguing that they improperly extended the deadline for recovering unpaid taxes and wrongly availed input tax credits for the period February 2018 to March 2018. Ray contended that Section 168A, which permits extensions in special circumstances due to force majeure, did not apply as no force majeure conditions existed when the show cause cum demand notice was issued on September 1, 2023. The petitioner claimed the notifications and subsequent actions constituted a colorable exercise of power, infringing on their accrued rights, and sought a stay on the demand order dated December 26, 2023. The Court, acknowledging the jurisdictional issue and the prima facie case presented, decided to hear the writ petition and invited affidavits from the State GST authorities. Citing a similar case (OSL Exclusive Pvt. Ltd. vs. Union of India & Ors.), the Court granted an interim stay on the impugned demand until the end of December 2024 or further orders, providing time for the exchange of affidavits and further proceedings.
