2025 (4) TMI 806 - HC - GST

Direction against an interim direction - HELD THAT - In the instant case the peculiar facts and circumstances persuades to grant an order of stay of the impugned orders in the writ petition without any condition. This is because the case of the appellant/writ petitioners is that they committed a mistake while claiming ITC in IGST to the tune of Rs.19, 12, 857/- in the place of actual claim of ITC in CGST of Rs.9, 56, 429.12/- in WBGST of Rs.9, 56, 429.12/- and as a result of the said ITC in IGST of Rs.19, 12, 857/- was reflected in the electronic credit ledger of IGST. The court is of the view that the orders impugned in the writ petition shall remain stayed till the disposal of the writ petition and the petitioners are exempt from making the payment of 10% of the tax in dispute as ordered by the learned writ court - Petition disposed off.

Summary

In the case before the Calcutta High Court, the appellants filed an intra-court appeal challenging an interim direction dated February 24, 2025, in WPA 406 of 2025. The Single Bench had previously exercised discretion to stay proceedings, contingent upon the appellants paying 10% of the disputed tax amount. The appellants argued that they mistakenly claimed Input Tax Credit (ITC) under IGST instead of the appropriate amounts under CGST and WBGST, resulting in a reflection of Rs.19,12,857/- in the electronic credit ledger of IGST. The court recognized that this error was revenue-neutral, causing no loss to the government. Consequently, the High Court decided to stay the impugned orders without requiring the 10% payment, modifying the interim order of the writ court. The judgment emphasized that this decision was based on the unique circumstances of the case and should not be considered a precedent. The matter was thus disposed of with these observations.