Crescent Manufacturing Pvt. Ltd. Vs Fast Track Revisional Authority Bench I And Ors. (Calcutta High Court)
The Calcutta High Court dismissed the writ petition filed by Crescent Manufacturing Pvt. Ltd., challenging the West Bengal Taxation Tribunal’s order dated 05.08.2024. The dispute stemmed from the non-renewal of the company’s eligibility certificate, which resulted in a demand for output tax for the period 04.03.2015 to 31.03.2015. The petitioner sought to adjust the tax liability using accumulated input tax credit (ITC) but was denied this relief by the Deputy Commissioner of Commercial Taxes, whose decision was upheld by the Joint Commissioner (Appeals), the Fast Track Revisional Authority, and finally, the Tribunal. The authorities ruled that West Bengal VAT Act, 2003 does not allow carry-forward ITC to be adjusted retrospectively.
After reviewing the case, the High Court upheld the Tribunal’s decision, emphasizing that once the eligibility certificate renewal is denied, the dealer must pay the output tax liability as per Rule 180 of the WBVAT Rules. Since the petitioner failed to meet this obligation within 30 days, the authorities were justified in enforcing the demand. The Court found no grounds for interference and dismissed the petition.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
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