UBS Exports International Pvt. Ltd. Vs State of West Bengal & Ors. (Calcutta High Court)
Calcutta High Court has dismissed a writ petition filed by UBS Exports International Pvt. Ltd. (hereinafter “the petitioners”) challenging a show cause notice (SCN) and a subsequent order issued under Section 74 of the West Bengal Goods and Services Tax (WBGST) / Central Goods and Services Tax (CGST) Act, 2017. The petition sought to quash the proceedings on the grounds that the SCN improperly combined multiple tax periods. The Court, however, emphasized the existence of an efficacious alternative remedy in the form of a statutory appeal.
The petitioners filed the writ petition after the final order dated November 21, 2024, was passed under Section 74(9) of the said Act, following an SCN issued on July 2, 2024. Significantly, the petitioners did not challenge the SCN immediately upon its issuance, opting to approach the High Court only after the final order was rendered.
Mr. Bag, representing the petitioners, argued that the show cause notice was fundamentally flawed as it sought to combine multiple tax periods into a single notice. This practice, he contended, was not sustainable under the GST regime. In support of this assertion, Mr. Bag cited several judicial precedents from other High Courts:
- Titan Company Ltd. v. Joint Commissioner of GST & Central Excise ([2023] 159 com162 (Madras)): This Madras High Court judgment was presented to argue that respondents should not be permitted to “bunch” show cause notices for consecutive tax periods. The Madras High Court in this case had entertained a similar writ petition and quashed the SCN.
- M/s Veremax Techonologie Services Limited v. The Assistant Commissioner of Central Tax (2024:KHC 36293): The Karnataka High Court, relying on the Titan Company Ltd. judgment and a Supreme Court decision in State of Jammu and Kashmir and others vs. Caltex (India) Ltd. (AIR 1966 SC 1350), had concluded that a single consolidated show cause notice for multiple assessment years contravenes GST provisions and established legal precedents.
- M/s Bangalore Golf Club versus Assistant Commissioner of Commercial Taxes (Enforcement): Another Karnataka High Court decision cited by the petitioners.
Mr. Bag submitted that, based on these judgments, the Calcutta High Court was competent to entertain the writ petition and, given the alleged unsustainability of the SCN, the final order should be set aside.
