Mongal Deep Enterprise & Anr. Vs State of West Bengal & Ors. (Calcutta High Court)
Summary: The Calcutta High Court considered a writ petition challenging an ex parte assessment order dated 11.12.2023 passed under Section 73 of the CGST Act and an appellate order dated 1.3.2025 affirming the assessment. The petitioners, traders of food products under the franchise of “Monginis Snacks” now known “Mio Amore”, challenged the demand of Rs. 2,28,241/- raised for the period July 2017 to March 2018 on account of alleged ITC mismatch.
The petitioners relied upon Circular No. 183/15/2022-GST dated 27th December, 2022, which prescribes the procedure to be followed before raising a demand on account of mismatch between FORM GSTR-3B and FORM GSTR-2A. The Circular requires the proper officer to first seek details regarding invoices on which ITC was availed but which were not reflected in FORM GSTR-2A and then ascertain fulfilment of the conditions under Section 16 of the CGST Act, including possession of the relevant tax invoice or debit note, receipt of goods or services, and payment towards the value of supply along with tax to the supplier.
The petitioners submitted that the prescribed procedure was not followed and that the show-cause notice was not served upon them, resulting in their inability to file a reply. Consequently, an ex parte adjudication order dated 11.12.2023 was passed. The petitioners thereafter preferred a statutory appeal for Financial Year 2017-18 upon depositing the requisite pre-deposit, but the appellate authority dismissed the appeal ex parte by order dated 1.3.2025 without considering the grounds raised.
