Ultratech Cement Limited Vs Commissioner (Appeals) CGST & CE (Calcutta High Court)
Calcutta High Court has intervened in a procedural dispute involving Ultratech Cement Limited, remanding an appeal back to the Appellate Authority after it was dismissed solely due to manual filing. The case, Ultratech Cement Limited Vs Commissioner (Appeals) CGST & CE, highlights the practical challenges faced by taxpayers navigating GST compliance, particularly in scenarios involving corporate restructuring and system limitations.
The petitioner, Ultratech Cement Limited, a prominent manufacturer and supplier of cement and clinker, had acquired the cement business of M/s. Century Textiles and Industries Limited (hereinafter “Century Textiles”) through a demerger scheme sanctioned by the National Company Law Tribunal (NCLT) on July 3, 2019. The effective date of this demerger was October 1, 2019, with Ultratech Cement becoming the “resulting company” and Century Textiles the “demerged company.” Following the demerger, Ultratech Cement obtained a new GST registration, with the date of liability recorded as July 1, 2017.
Despite informing the GST authorities about the demerger, Ultratech Cement alleged that the respondents continued to audit the books of Century Textiles, even though the business was now under Ultratech’s control. The core of the dispute arose when a show-cause notice, dated March 29, 2023, was issued under Section 73 of the CGST Act for the tax period July 2017 to March 2018 and the financial year 2018-2019. Crucially, this notice was issued in the name of Century Textiles, despite the demerger having been effective since October 1, 2019, and the manufacturing unit having been taken over by Ultratech.
