2025 (3) TMI 485 - HC - GST

Challenge to an appellate order under the Central/West Bengal Goods and Services Tax Act 2017 for the Financial Year 2019-2020 - wrongful availment of input tax credit - wilful suppression of facts or not - HELD THAT - Initially a show cause notice was issued under Section 74 of the said Act and accordingly on the basis thereof an order under Section 74 of the said Act was passed on 12th May 2021. Subsequently the appellate authority while hearing out the appeal by taking note of the provisions contained in Section 74 and 73 of the said Act was of the view that though the petitioner had wrongly availed input tax credit however since it could not be established that the availment of input tax credit was by reasons of fraud wilful misstatement or suppression with an intent to evade tax the appellate authority had proceeded to hold that the present proceeding should be treated as a case within the meaning of Section 73 of the said Act. Matter remanded to the appellate authority with a direction upon the appellate authority to reconsider the above appeal in the light of GSTR-2A a copy whereof has been placed before this Court and to decide the applicability of Section 16 (5) of the said Act having regard to the returns filed by the petitioner within the extended cutoff date as provided therein. Petition disposed off by way of remand.

Summary

The Calcutta High Court remanded a case challenging an appellate order under the Central/West Bengal Goods and Services Tax Act, 2017 for the Financial Year 2019-2020. The appellate authority found that the petitioner wrongly availed input tax credit but did not establish fraud, wilful misstatement, or suppression to evade tax. The Court directed a reconsideration by the appellate authority in light of GSTR-2A and the provisions of Section 16(5) of the Act. The matter was remanded for a fresh order, with the impugned order not to be enforced until then. The writ petition was disposed of with these directions.