Cosyn Limited Assistant Commissioner of State Tax (Calcutta High Court)
The Calcutta High Court addressed an appeal by Cosyn Limited challenging an assessment order under the West Bengal GST Act. Initially, the writ petition was dismissed as the order was appealable. However, the court provided interim relief by staying the assessment order subject to the appellant depositing 10% of the disputed tax. After compliance, the matter was heard in detail. The appellant argued that input tax credit (ITC) of IGST used to pay SGST was appropriately apportioned to the Government of West Bengal. The department’s affidavit acknowledged this transfer of funds, negating the basis of the assessment order.
Subsequently, the court found no grounds for the assessment order to survive, given that the tax amounts in question had already been transferred to the West Bengal government. The court set aside both the writ dismissal and the impugned assessment order. Additionally, it directed the department to refund the 10% pre-deposit made by the appellant within eight weeks. The judgment clarified procedural and legal compliance concerning ITC utilization and apportioned state funds.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
This intra-Court is directed against the order dated 4th December, 2023 in W.P.A. 25725 of 2023, by which the writ petition, which was filed by the appellant challenging an assessment order passed under the W.B.G.S.T. Act, was dismissed on the ground that it is an appealable order. When the appeal was heard on 22nd December, 2023, the impugned assessment order in the writ petition was stayed subject to the condition that the appellant/assessee deposits 10% of the disputed tax within a time frame, which condition has been complied with.
