Shine Pharmaceuticals Ltd Vs Joint Commissioner of Revenue (Calcutta High Court)
The writ petition before the Calcutta High Court challenged an appellate order dated 28 March 2025 passed under Section 107 of the West Bengal GST Act, 2017 / CGST Act, 2017. The appellate order had modified an adjudication order dated 16 January 2024 passed under Section 73 of the Act.
The proceedings originated from a show cause notice issued to the petitioner under Section 73, proposing tax liability on three counts: excess availment of Input Tax Credit (ITC), ITC liable for reversal, and short payment of tax on outward supplies. The petitioner did not submit a reply to the show cause notice. Consequently, the proper officer passed an adjudication order holding the petitioner liable on all three counts.
The petitioner filed an appeal against the adjudication order. The Appellate Authority partly allowed the appeal by interfering with the findings relating to short payment of tax on outward supply and excess payment of ITC. However, it declined to interfere with the finding relating to reversal of ITC.
Before the High Court, the petitioner contended that scrutiny of the GST returns would show that ITC reversal had already been correctly made. It was submitted that the petitioner was liable to reverse ITC amounting to ₹1,74,40,594.33 on account of credit notes and ₹4,997.41 due to discrepancy in place of supply, aggregating to ₹1,74,45,591.74. Reference was made to Form GSTR-3B, which disclosed a total IGST liability of ₹1,77,40,264.89, and it was argued that after adjustment, the actual ITC reversed was ₹1,76,09,629.81, resulting in excess reversal of ₹1,64,038.07.
