Roshan Sharma Vs Deputy Commissioner of Revenue & Anr. (Calcutta High Court)
The Calcutta High Court has dismissed a writ petition filed by Roshan Sharma, the proprietor of M/s ARS Metals, upholding an adjudication order that denied the firm’s Input Tax Credit (ITC) claims. The court’s decision, delivered on July 24, 2024, concluded a second round of litigation between the tax assessee and the tax authorities, finding no jurisdictional error or irregularity in the proper officer’s actions.
The dispute originated from the tax period spanning August 2020 to March 2023. M/s ARS Metals, a registered taxpayer, had availed and utilized ITC on inward supplies. However, an investigation revealed that the firm’s primary supplier, M/s Rachna Trading Co., was non-existent, and its registration had been cancelled. The tax authorities alleged that M/s ARS Metals had claimed ITC on the basis of fake tax invoices and e-way bills. Consequently, a show-cause notice was issued, and the firm’s electronic credit ledger was blocked under Section 86A of the WBGST / CGST Act, 2017.
The initial adjudication order, which confirmed the tax demand, was challenged by the petitioner on the grounds that he was not provided with copies of the statements of key witnesses—the proprietor of M/s Rachna Trading Co. and a transporter—and was not given an opportunity to cross-examine them. This led to a previous writ petition, which was subsequently dismissed. An appeal to a Division Bench of the High Court resulted in a remand order on May 7, 2024. The Division Bench directed the proper officer to provide the petitioner with the statements and allow for cross-examination before issuing a fresh decision.
