Prakriti Eminent Height LLP Vs Senior Joint Commissioner of Revenue & Ors (Calcutta High Court)
The petitioner challenged an order dated August 2, 2024 passed under Section 107 of the West Bengal GST Act, 2017, by which its appeal against an adjudication order dated May 2, 2023 under Section 73 of the Act was dismissed. The petitioner contended that proceedings under Section 73 could not have been initiated for the relevant tax period after expiry of three years from the due date of furnishing returns. It was argued that the authorities relied on notifications dated July 5, 2022 and August 23, 2022 to initiate and conclude the proceedings, though such notifications were allegedly issued in contravention of Section 168A, which could be invoked only in force majeure situations, stated to be absent at the relevant time.
After hearing both sides and considering the record, the Court admitted the writ petition. The respondents were permitted to file affidavits-in-opposition within four weeks, with liberty to the petitioner to file a reply thereafter. The matter was directed to be listed for hearing after completion of pleadings. The Court ordered that if the petitioner deposits 10% of the balance tax in dispute in terms of Section 112(8) within two weeks, the GST authorities shall be restrained from recovering any amount pursuant to the adjudication and appellate orders until further orders. Upon such deposit, the recovery notice dated July 21, 2025 would also stand stayed.
