In a recent case, the Calcutta High Court allowed the time to file an objection against notice issued by Directorate of Revenue Intelligence and Enforcement ( DRIE ) as the notice issued during pendency of blocking of credit proceedings has no impact on it.
Truvolt Engineering Company Pvt. Ltd, the petitioner challenged the order by which the writ petition was disposed of by directing the adjudicating authority to pass final orders considering the objection filed by the appellants.
Ready to Grow? Choose a Course That Fits Your Goals!
Pursuant to such direction, the Assistant Commissioner, State Tax, Directorate of Revenue Intelligence and Enforcement, Kolkata has passed an order dated 21st March, 2024 captioned as “counter reply to the submission dated 08.02.2024”.
Thus, it appears that the order and direction issued in the writ petition has been complied with and the Assistant Commissioner, State Tax has taken a decision reiterating the earlier observation with regard to the justification of blocking of the credit. The blocking of the credit was initiated pursuant to an order passed by the Joint Commissioner, State Tax, Directorate of Revenue Intelligence and Enforcement by proceedings dated 27th December, 2023. During the pendency of this proceedings the said authority, namely, the Joint Commissioner has issued a notice in Form DRC-01A dated 28th March, 2024.
Ready to Grow? Choose a Course That Fits Your Goals!
The Court observed that the appellants should not be left remediless and the contentions raised by the appellants either before the Assistant Commissioner, State Tax or in any of the earlier representations given to the Joint Commissioner, State Tax should be taken note of and a fresh decision should be taken uninfluenced by any earlier observations made either by the Assistant Commissioner, State Tax or by the Joint Commissioner, State Tax since the adjudication proceedings has commenced only after issuance of DRC-01A dated 28th March, 2024.
A division bench of Chief Justice T S Sivagnanam and Justice Hiranmay Bhattacharyya disposed of the appeal by directing the appellants to submit their objections within a period of three weeks in response to the allegations made in DRC-01A dated 28th March, 2024.
Ready to Grow? Choose a Course That Fits Your Goals!
On receipt of the reply, the authority, namely, the Joint Commissioner, State Tax shall afford an opportunity of personal hearing to the authorized representative of the appellants and pass orders on merits and in accordance with law uninfluenced by any of the observations made in any of the earlier orders or communications sent by the Assistant Commissioner, State Tax.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
