Raju Sharma Vs Assistant Commissioner of State Tax (Calcutta High Court)
Summary: The Calcutta High Court dealt with a writ petition challenging the order dated 19.03.2026 passed by the Deputy Commissioner of State Tax, Bureau of Investigation, imposing a total penalty of Rs. 3,70,63,516/- (CGST Rs. 1,85,31,758/- and SGST Rs. 1,85,31,758/-) under Section 122(1)(i) and Section 122(1)(vii) of the West Bengal Goods and Services Tax Act, 2017 read with the Central Goods and Services Tax Act, 2017. The core issue before the Court was whether the penalty could be sustained when the petitioner had not been afforded an opportunity to cross-examine persons whose statements had been relied upon in the adjudication proceedings.
The petitioner was a sole proprietorship concern carrying on business under the name and style of “RID” and was a registered taxable person under the WBGST and CGST Act. According to the petitioner, a show cause notice had been issued on the ground of issuance of invoices without actual supply of goods or services and availment and utilisation of Input Tax Credit without actual receipt of goods or services. In the reply to the show cause notice, the petitioner specifically requested cross-examination in personal hearing of Dipak Kumar Daiya and Barun Kumar Jha.
