SCN uploaded in a Different portal which was  not known to Assesee: Calcutta HC set aside order u/s 74 of GST Act [Read Order]

The Calcutta High Court(HC) set aside the order under section 74 of the West Bengal Goods and Service Tax (WBGST Act), 2017 since the Show Cause Notice (SCN) on which the order passed was uploaded by the department in a different portal which was not known to the assessee.

Prabhu Dayal Jajoo, the appellant filed the appeal against the order passed in the writ petition which was dismissed by the Single Bench. The orders impugned in the writ petition were the orders passed under Section  74 of the WBGST Act.

The Single bench observed that the writ petition was preferred much after the period of limitation for filing the appeal that too beyond the condonable period declined to interfere with the order passed under Section 74 of the Act. While dismissing the writ petition, the Writ Court has held that it will be open to the appellant to avail the statutory remedy available under the Act. The main ground on which the order passed under Section 74 of the Act was on the ground of violation of principles of natural justice.

The appellant argued that the show cause notice was uploaded in a different portal and the appellant had no knowledge of the same.  That apart, the show cause notice is also bereft of the particulars and therefore, it is submitted that the very initiation of proceedings itself is not by the law. Though the orders which were impugned in the writ petition were passed in March 2022, the notices for recovery were issued only in the year March 2023.

Mr. T.M. Siddique, counsel appearing for the State would vehemently contended that the submission made by the advocate for the appellant is incorrect and all information was provided to the assessee.

A two-judge bench comprising Chief Justice, T S Sivagnanam and Justice Hiranmay Bhattacharyya viewed that liberty can be granted to the appellant to file a statutory appeal, more so when certain sums of money have already been recovered by the department from the electronic cash ledger.

The Court disposed of the appeal by directing the appellant to file a statutory appeal before the first appellate authority and if the same is filed within a period of 15 days from the date of receipt of the server copy of the order, the appeals shall be entertained without rejecting the same on the ground of limitation.

“The pre-deposit amounts which the appellant have to make shall be adjusted from and out of the amount already recovered from the appellant by way of recovery from the electronic cash ledger, the balance amount which was recovered from the appellant shall abide by the orders that may be passed by the appellate authority in the appeal to be filed by the appellant in terms of the above direction. If the appellant files a statutory appeal within the period stipulated by this order, the attachment of the appellant’s bank account shall be lifted.”, the Court held.

To Read the full text of the Order CLICK HERE

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