Hriday Kumar Das Vs State of West Bengal And Ors. (Calcutta High Court)
In the case of Hriday Kumar Das vs. State of West Bengal and Ors., the Calcutta High Court addressed an intra-court appeal regarding an interim order that mandated the appellant to pay 10% of the disputed tax amount for the stay of proceedings under the West Bengal Goods and Services Tax (WBGST) Act. The appellant contested this condition along with various other grounds, particularly questioning the legitimacy of the appellate authority’s decision to enhance the tax liability without adhering to the procedural guidelines established under Section 107(11) of the Act. The tax amount originally assessed was ₹2,58,536.80; however, the penalty imposed was calculated on a significantly higher figure of ₹41,83,804.72, which the appellant challenged in a statutory appeal.
The court scrutinized whether the appellate authority acted within its jurisdiction when it unilaterally increased the tax liability. It determined that the authority failed to follow the necessary procedures, rendering that portion of the order invalid. Moreover, the court found merit in remanding the matter back to the original adjudicating authority due to developments that transpired post the original order, including a closing order issued by the Deputy Commissioner, which could affect the appellant’s tax liabilities. Consequently, the court instructed that all issues, including the imposition of penalties and the applicability of specific sections of the Act, be reconsidered without bias from previous decisions or findings. The court allowed the appellant to submit a supplementary reply to the allegations and emphasized the need for a fresh hearing to resolve the matter fairly based on the latest evidence and legal standards.
