Tara Lohia Private Limited Vs Additional Commissioner (Calcutta High Court)
The Calcutta High Court has dismissed a writ petition filed by Tara Lohia Private Limited against an order from the Additional Commissioner regarding the West Bengal Goods and Services Tax Act, 2017. The company challenged an order dated January 29, 2025, concerning the tax period from July 2017 to March 2022. The dispute originated from an audit conducted under Section 65 of the GST Act, which led to a show cause notice detailing multiple alleged irregularities. The petitioner, however, limited its challenge to four key areas: irregular availment of input tax credit (ITC) on motor vehicles, ineligible credits, excess ITC claimed compared to GSTR-2A, and credits claimed despite non-payment to creditors within 180 days.
Petitioner Fails to Substantiate Claims
During the proceedings, the petitioner’s counsel, Mr. Saraf, argued that the tax authority incorrectly assumed that outstanding amounts listed under sundry creditors in the company’s balance sheet were unpaid for more than 180 days. He contended that the company had provided a chart demonstrating that payments were made within the statutory period, with only one exception. However, the court found that the company had not provided bank statements or other documentary evidence to support these claims, either during the audit or in response to the show cause notice. The court noted that while the proper officer had considered the petitioner’s response, it was dismissed due to the lack of verifiable proof. On the other issues of irregular and excess ITC claims, the court also found that the petitioner failed to provide the necessary supporting documents.
