2025 (7) TMI 1202 - HC - GST

Reversal for input tax credit (ITC) availed - order passed by the appellate authority under Section 107 of the WBGST/CGST Act 2017 - declaration of supplies made to the petitioner in GSTR 1 but failure to pay GST on the same by not filing GSTR 3B returns - HELD THAT - Noting that the appellate tribunal is yet to be constituted the writ petition should be heard. The respondents are directed to disclose all records inter alia including the steps taken by the respondents to protect its interest by way of lodging claim before the resolution professional if any. The petitioner is also directed to place before this Court the resolution plan approved by the National Company Law Tribunal Kolkata in CP (IB) No. 596/KB/2017 on the basis whereof the petitioner seeks immunity - Let the affidavit-in-opposition be filed within a period of six weeks from date.

Summary

The Calcutta High Court, before Raja Basu Chowdhury, J., entertained a writ petition challenging an order under Section 107 of the WBGST/CGST Act, 2017 concerning the tax period 2017-2018. The petitioner's supplier, M/s Cosmic Ferro Alloys Limited, declared supplies in GSTR-1 but failed to pay GST by not filing GSTR-3B returns, leading to reversal of input tax credit (ITC) under Section 16(2)(c). The petitioner argued that since Cosmic Ferro Alloys underwent insolvency and a resolution plan was approved under Section 31 of the Insolvency and Bankruptcy Code, 2016, the petitioner should not be liable for the ITC reversal, especially as the respondents did not lodge any claim with the resolution professional and the supplier's liability was extinguished. The Court directed the respondents to disclose records, including steps taken to protect their interest by lodging claims with the resolution professional. The petitioner was ordered to produce the approved resolution plan. The Court stayed the demand raised by the respondents, subject to the petitioner depositing 10% of the disputed tax within four weeks under Section 107(6), pending disposal of the writ petition. The Court scheduled filing timelines for affidavits and granted liberty to mention further.