Protiva Vs Deputy Commissioner of State Tax (Calcutta High Court)
Summary: The Calcutta High Court considered a writ petition challenging an ex parte order dated 25.1.2024 passed under Section 73 of the Central Goods and Services Tax Act, 2017. The petitioner, a partnership firm engaged in Events, Exhibitions, Conventions and Trade Shows Organization and Assistance Services, had been issued a show cause notice concerning alleged excess availment of input tax credit for FY 2018-19. The petitioner contended that the alleged ITC discrepancy was reconcilable and that the reply to the show cause notice could not be filed due to medical exigencies of the partners. It also contended that adequate and effective opportunity had not been afforded before the ex parte order was passed.
The respondent authorities opposed the writ petition, submitting that ample opportunities, including two dates for personal hearing, had been provided and that the petitioner had an efficacious alternative remedy of appeal under Section 107 of the CGST Act within three months, with a further condonable period of one month.
The High Court, after considering the materials on record, found that the petitioner had made out a prima facie case warranting interference at that stage. The Court took judicial note of the medical documents relating to the medical exigencies of the partners and observed that, although an alternative statutory remedy under Section 107 was available, relegating the petitioner to the appellate forum without protection, particularly considering the huge amount of tax, interest and penalty imposed, would cause prejudice.
