Earthmark Traders Vs Joint Commissioner, State Tax (Calcutta High Court)
In a recent case of Earthmark Traders v. Joint Commissioner, State Tax, Chinabazar & Rajakatra Charge & anr., the esteemed Calcutta High Court made a significant ruling [MAT 791 of 2023 dated May 12, 2023]. The court overturned the order issued by the Appellate Authority, emphasizing that the Appellate Authority must confine its considerations within the scope of the allegations mentioned in the Show Cause Notice (referred to as “the SCN”).
Facts:
M/s Earthmark traders (“the Appellant”) exported goods and claimed refund of Input Tax Credit (“ITC”). The Revenue Department inspected the premises of the Appellant on August 18, 2021.
Subsequently, issued a Show Cause Notice dated August 28, 2021 (“the Impugned SCN”) demanding back erroneous refunded of ITC claimed by the Appellant. However, the Impugned SCN was silent on the facts and regarding the documents to be submitted by the Appellant.
Thereafter, a Memo dated January 27, 2022 (“the Memo”) was communicated to the Appellant in which various allegations were placed and the Appellant was directed to produce corroborative documents. The Appellant filed the reply of the Memo vide letter dated April 26, 2022 and produced documents.
Subsequently, on September 14,2021 the Adjudicating Authority passed the final order (“the Impugned Order”).
Aggrieved with the Impugned Order, the Appellant filed an appeal before the Joint Commissioner (“the Respondent”) who dismissed the appeal on the ground that the Appellant has not proved the claim of export of goods.
Aggrieved by the Order of the Appellate Authority the Appellant filed this Writ before the Hon’ble Calcutta High court.
The Single Judge bench vide WPA 7905 of 2023 dated May 04, 2023 declined to grant interim order in the writ petition.
Aggrieved by the order of the Single judge bench the Appellant filed an intra-court appeal.
Issue:
Whether the Appellate Authority can issue order beyond the allegations mentioned in the SCN?
Held:
The Hon’ble Calcutta High Court in MAT 791 of 2023 held as under:
