Ashok Sharma Vs State of West Bengal & Ors. (Calcutta High Court)
In Ashok Sharma vs. State of West Bengal & Ors., the Calcutta High Court addressed an intra-court appeal filed by the appellant challenging a previous order dismissing his writ petition. The appellant had sought cancellation of several GST-related documents including a show-cause notice, summary order, and tax and penalty demand issued under Section 129 of the Central Goods and Services Tax (CGST) Act, 2017. He had already exhausted all statutory remedies before approaching the High Court.
The core dispute revolved around whether the goods transported under three invoices matched the actual items found during inspection and whether there was any intent to evade GST. The Court reviewed the documentation and noted that while the invoices provided only a broad classification of goods, there was no discrepancy in quantity or weight. The items listed and those found matched in terms of general description, and the Harmonized System of Nomenclature (HSN) codes were consistent. The Court observed that the inspecting authorities had gone beyond the invoice descriptions to make detailed inquiries into product specifications like pipe size or shutter types—details not typically required in standard invoices.
The Court found no evidence suggesting the appellant intended to evade tax or that any goods were misdeclared. As such, invoking Section 129—which allows for detention of goods and imposition of penalties in cases of tax evasion—was deemed unwarranted. It held that the orders from both the Original and Appellate Authorities lacked sufficient legal basis and procedural justification. Consequently, the High Court allowed the appeal, set aside the previous writ court’s decision, and quashed all challenged orders. Additionally, the Court directed the release of the detained vehicle and goods within four days and granted the appellant liberty to seek a refund of the pre-deposit made during the appellate process.
