GST | Calcutta High Court Quashes Excess ITC Demand Pertaining To Initial Years Of GST Rollout

Justice Om Narayan Rai observed that there was 'total non-consideration of material on record' upon tracing through the paper book as well as relevant documents annexed to the writ petition which were also placed on record before the Appellate Authority (AA).

For the period April 2018 to March 2019, Petitioner carried a 2023 show cause notice alleging short payment of tax towards outward supplies in appeal. The GST Department had alleged availment of excess Input Tax Credit (ITC) and Adjudication order under Section 73 WBGST/CGST Act demanded reversal of the same. Hence, the writ petition.

Advocate Himangshu Kumar Ray appearing on behalf of the Petitioner, a Goods Transport Agency (GTA) dealing with exempted goods submitted that as a GTA it was not liable to reverse ITC. It was clarified that after the appellant order dismissing its appeal against the demand, it discharged differential tax liability. Also, that all supporting documents like transportation bills were submitted with the appeal that evidenced no excess ITC was availed.

The Calcutta High Court opined that non‑consideration of the documentary evidence by the AA rendered appellate order perverse and set aside the order dated July 18, 2025.

The Calcutta High Court remanded back to the AA for considering the appeal filed by Petitioner afresh. It allowed Petitioner to file additional reply/submissions.

Accordingly, with a direction to the AA to decide appeal within six weeks of receiving HC order, the Calcutta High Court clarified it did not examine merits and so all issues were left open.

Case Name: Soumyendu Bikash Jana vs. The State of West Bengal & Ors.

For Petitioner: Advocates Himangshu Kumar Ray, Subhasis Podder, Gourav Chakraborty, Animitra Roy

For Respondent: Advocates Tanoy Chakraborty, Sumita Shaw, Saptak Sanyal

Click here to read the order.