Jyoti Tar Products Private Limited & Anr. Vs Deputy Commissioner (Calcutta High Court)
Calcutta High Court dismissed the writ petition filed by Jyoti Tar Products Private Limited, challenging the denial of Input Tax Credit (ITC) under the Central and West Bengal Goods and Services Tax (GST) Acts for the financial year 2018-19. The dispute arose from the Deputy Commissioner of State Tax rejecting ITC claims on invoices issued by suppliers deemed non-existent or unregistered at the time of verification. The petitioner contended that the transactions were genuine, as payments were made through banking channels, invoices were in their possession, and goods were physically delivered. However, the tax authorities argued that ITC was inadmissible on inward supplies from entities retrospectively canceled as registered suppliers. The petitioners sought to quash the adjudicating order (FORM DRC-07, Reference No. ZD190724015748Z, dated 10.07.2024).
The court, citing the Supreme Court’s ruling in Assistant Commissioner (CT) LTU, Kakinada & Ors. Vs. M/s. Glaxo Smith Kline Consumer Healthcare Limited, emphasized that when a statutory alternative remedy is available, writ petitions should be avoided. It directed the petitioners to challenge the order before the appropriate appellate authority instead of seeking direct judicial intervention. Consequently, the writ petition (WPA 23741 of 2024) was disposed of without costs, reaffirming that taxpayers must follow the prescribed appellate process before approaching the High Court.
