Jyoti Ghosh Vs Tax Recovery Officer (Calcutta High Court)
VAT Assessment Without Form-25 Notice Vitiated | Non-Service of Mandatory Notice Renders Order Invalid & Recovery Unlawful: Calcutta HC
Executive Summary
The Calcutta High Court’s Circuit Bench at Jalpaiguri has delivered a significant judgment on the procedural requirements mandated under the West Bengal Value Added Tax Act, 2003, holding that a VAT assessment passed without service of the mandatory notice in Form-25 is vitiated ab initio, and any recovery made pursuant to such invalid assessment must be refunded. The court has reinforced the fundamental principle that administrative orders cannot become effective unless properly communicated to the affected person.
Facts of the Case
Jyoti Ghosh received a warning notice dated 31st May, 2025, issued by the Tax Recovery Officer, Siliguri, in connection with Certificate Case No. TRO/05/2017-18/89/00281. Upon receipt of this notice, the petitioner immediately approached the respondent’s office to express his ignorance regarding the initiation of such proceedings against him. However, without disclosing the details of the proceeding, the tax authority coerced the petitioner to deposit Rs. 5,59,268/-.
Subsequently, it was discovered that Rs. 3,75,989/- had already been arbitrarily deducted from the petitioner’s bank account maintained with State Bank of India, Siliguri Branch. Under continued pressure from the authority, the petitioner was forced to deposit the balance amount.
