R.A.A. Arsalan Enterprise Private Limited & Anr Vs Superintendent CGST And CX (TAR) (Calcutta High Court)
Calcutta High Court considered a writ petition seeking quashment of several notices issued under the CGST Act, 2017, including a notice dated November 20, 2025, by which the petitioners were directed to pay ₹64,15,222/-. The notice also warned that failure to make payment would result in recovery proceedings under Section 79 of the CGST Act, 2017.
The petitioners contended that they had already paid ₹56,35,059/- towards interest under Section 50 of the CGST Act read with Rule 88(b) of the CGST Rules and were therefore not liable to pay any further amount. It was argued that amounts deposited in the electronic cash credit ledger must be treated as payment of tax once adjusted at the time of filing of returns, and consequently, interest is not payable for the period between such deposit and the filing of returns. In support, reliance was placed on judgments of the Gujarat High Court and the Madras High Court, where similar views had been expressed.
On behalf of the CGST authorities, it was argued that, as recorded in the third paragraph of the impugned notice dated November 20, 2025, the petitioners remained liable to pay the amount demanded therein.
