GST UPDATE

???? Desk of CA. Sharma Praveen Series-580????

CALCUTTA HIGH COURT IN THE CASE OF RKEC Projects Limited Section 73, Section 50 of the Central Goods and Services Tax Act, 2017

?The petitioner challenged an order dated 25th January 2024, issued under Section 73 of the CGST/WBGST Act for the tax period April 2021 to March 2022, arguing that the demand was solely for interest and should not apply since the tax was paid using available Input Tax Credit (ITC). 

?The petitioner relied on a similar case, M/s Refex Industries Ltd., where the court ruled that interest could not be levied on ITC. The respondent argued that the petitioner had an alternative remedy through appeal.

?The court found that the petitioner had not attached the reply to the show-cause notice and noted factual issues requiring detailed scrutiny. Since appellate authorities are available and functional, the court declined to entertain the writ petition. 

?The petitioner was directed to file an appeal within three weeks, and the appellate authority was asked to dispose of the appeal within eight weeks, considering the delay due to the pending writ petition. The petition was dismissed, with directions for an expedited appeal process.

Sharma Praveen

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