Kamdhenu Udyog P Ltd. & anr. Vs. Deputy Commissioner of Revenue, Bhabanipur Charge & ors. (Calcutta High Court)
The Calcutta High Court set aside orders passed under Sections 73 of the West Bengal GST Act against portioner, which had voluntarily reversed wrongly availed ITC via Form GST DRC-03 following directions from the Anti-Evasion Wing.
Although the reversal covered multiple tax periods, the petitioner failed to mention one of the tax periods in the form. The adjudicating and appellate authorities acknowledged the voluntary reversal but denied relief citing this technical irregularity.
The Court held that the case involved no tax evasion but only wrongful availment of ITC that was fully reversed. It ruled that the technical error in reflecting the period of reversal was curable.
The Court placed its reliance on the decision of Bombay High Court in case of Rajesh Real Estate Developers Pvt. Ltd. vs. Union of India, (2024-VIL-1498-BOM), Kerala High Court in case of Lotus Pharmaceuticals vs. the Assistant State Tax Officers & Ors. (2025-VIL-259-KER), and Calcutta High Court in case of Nivriya India Pvt. Ltd. vs. Assistant Commissioner of State Tax, (2024-VIL-1073-CAL).
The Calcutta High Court set aside orders passed under Sections 73 of the West Bengal GST Act against portioner, which had voluntarily reversed wrongly availed ITC via Form GST DRC-03 following directions from the Anti-Evasion Wing.
