Jyoti Tar Products Private Limited & Anr. Vs Deputy Commissioner of State Tax (Calcutta High Court)
Calcutta High Court has intervened in a dispute between a taxpayer, M/s Jyoti Tar Products Private Limited, and the state tax authorities, ruling that the revenue department cannot proceed with recovery actions or debit a taxpayer’s electronic ledger once the mandatory pre-deposit for filing an appeal before the Goods and Services Tax Appellate Tribunal (GSTAT) has been made.
The case, heard by the Calcutta High Court, arose after M/s Jyoti Tar Products Private Limited challenged an order passed by the Deputy Commissioner of State Tax. The initial order, issued under Section 73 of the Central/West Bengal Goods and Services Tax Act, 2017, on November 24, 2023, determined a tax demand and penalty for the period April 2022 to March 2023.
Aggrieved by this order, the company filed an appeal before the first appellate authority under Section 107 of the GST Act. In compliance with the requirements for maintaining the appeal, the petitioners deposited the stipulated pre-deposit amount of Rs. 35,316/-.
However, the first appeal was dismissed on December 24, 2024, upholding the demand and penalty levied by the proper officer.
Following the dismissal of the first appeal, the petitioners intended to file a further appeal before the GST Appellate Tribunal. They communicated this intention to the respondents in writing on December 31, 2024. Crucially, recognizing that the Appellate Tribunal was not yet operational, the petitioners took steps in accordance with the provisions of Section 112(8) of the GST Act, read with Section 143 of the Finance (No.2) Act, 2024. This involved making an additional mandatory pre-deposit of 10 percent of the disputed tax amount. This additional deposit amounted to Rs. 17,658/- for CGST and Rs. 17,658/- for SGST, totaling Rs. 35,316/-.
