2025 (1) TMI 1139 - HC - GST

Short payment of RCM - ITC availed in excess - ITC found reversible - HELD THAT - Challenge of Rule 36(4) of CGST Rules 2017 has no direct bearing with Short Payment of RCM ITC availed in excess and ITC found reversible the facts of this case and as the adjudication order dated 28th August 2024 has a remedy by way of an appeal under Section 107 of the GST Act to deal with all the questions of facts as narrated by the learned counsel appearing for petitioner the writ petition are dismissed.

Summary

In the judgment by the Calcutta High Court, presided over by HON'BLE RAJARSHI BHARADWAJ, J., the petitioner contested the adjudication order dated August 28, 2024, citing issues of "Short payment of RCM," "ITC availed in excess," and "ITC found reversible." The petitioner argued that the adjudication violated the principle of natural justice by exceeding the scope of the show-cause notice and challenged the constitutional validity of Rule 36(4) of the Central Goods and Services Tax and West Bengal Goods and Services Tax Rules, 2017, prior to January 1, 2022.

The respondent authorities contended that the adjudication order is appealable under Section 107 of the GST Act. The court determined that the challenge to Rule 36(4) did not directly affect the issues concerning "Short Payment of RCM," "ITC availed in excess," and "ITC found reversible." Given the availability of an appeal remedy under Section 107 of the GST Act, the court dismissed the writ petition WPA 28649 of 2024 and CAN 1 of 2024, with no order as to costs. All parties were instructed to act based on the server copy of the order from the court's official website.