Niranjan Paul Vs Assistant Commissioner of State Tax (Calcutta High Court)
ITC Demand Quashed: Calcutta HC on Evidence & Supplier Validity; Calcutta High Court Quashes Ineligible ITC Demand, Citing Authorities’ Failure to Consider Evidence; Calcutta High Court overturns ineligible ITC demand against Niranjan Paul, citing authorities’ failure to consider crucial evidence of goods movement and supplier’s valid registration.
Calcutta High Court, in the case of Niranjan Paul vs. Assistant Commissioner of State Tax, has set aside orders from the Additional Commissioner of State Tax (Appeals) and the Deputy Commissioner of State Tax, which had demanded ineligible Input Tax Credit (ITC) from a registered person under the West Bengal Goods and Services Tax Act, 2017. The court’s decision, delivered on June 17, 2025, emphasizes the failure of tax authorities to adequately consider evidence of physical goods movement and the supplier’s valid registration at the time of supply.
The petitioner, Niranjan Paul, faced allegations of wrongly claiming ITC for supplies made by “Global Bitumen” between March 14, 2019, and March 28, 2019. The tax authorities asserted that the supplier was “non-existent and non-operational” at their declared place of business. Consequently, the adjudicating authority, on April 15, 2024, ordered Paul to pay the ineligible ITC along with interest and penalty. This decision was subsequently upheld by the appellate authority on March 17, 2025.
