2025 (6) TMI 1784 - HC - GST

Challenge to appellate order passed u/s 107 of the WBGST /CGST Act 2017 - HELD THAT - It appears that being aggrieved by the order dated 19th January 2021 passed under Section 74 of the said Act for the tax period April 2018 to November 2019 the petitioner though belatedly had filed an appeal by availing the Scheme to belatedly file an appeal thereby depositing 12.5 per cent of the disputed tax. However in the interregnum it appears that a sum of Rs.1, 45, 188/- had been recovered from the petitioner s credit ledger against demand id ZD190121004969C as would corroborate from the print out of the screenshot from the petitioner s portal which has not been appropriately given credit in Form GST APL 04 inasmuch as the total demand in Form GST DRC 07 on account of tax being Rs.1, 14, 736/- and Rs.1, 45, 188/- having been recovered pursuant to the above demand no further demand on account of such disputed tax could have been raised by the respondents. If the respondents have chosen to recover a sum of Rs. 1, 45, 188/- from the petitioner against the demand raised by the respondents in Form GST DRC 07 dated 19th January 2021 the said amount ought to have been adjusted against the principal tax demand at the first instance. There being no clarity in the order as regards the above the aforesaid order cannot be sustained and the matter should be remanded back to the appellate authority. Petition disposed off by way of remand.

Summary

The Calcutta High Court, in a writ petition challenging the appellate order dated 27th January 2025 under Section 107 of the WBGST/CGST Act, 2017, addressed issues arising from the order dated 19th January 2021 under Section 74 for the tax period April 2018 to November 2019. The petitioner had filed a belated appeal under the Scheme, depositing 12.5% of the disputed tax. However, the Court noted that Rs.1,45,188/- had been recovered from the petitioner's credit ledger against demand ID ZD190121004969C, but this recovery was not credited in Form GST APL-04. Since the total demand was Rs.1,14,736/- and Rs.1,45,188/- had already been recovered, "no further demand on account of such disputed tax could have been raised by the respondents."The Court held that the recovery should have been adjusted against the principal tax demand initially. Due to the lack of clarity in the appellate order regarding this adjustment, the Court found the order unsustainable and remanded the matter to the appellate authority. On remand, the appellate authority is directed to consider the recovery made on 9th January 2022 against the relevant demand ID and factor in the petitioner's pre-deposit. The writ petition was disposed of with these directions.