Prasanna Kumar Thakkar vs Director
2022 Latest Caselaw 5306 Cal

Item No.7.

             IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
                      CIVIL APPELLATE JURISDICTION
                               APPELLATE SIDE

                               HEARD ON:11.08.2022

                          DELIVERED ON:11.08.2022

                                    CORAM:

               THE HON'BLE MR. JUSTICE T. S. SIVAGNANAM
                                      AND
         THE HON'BLE MR. JUSTICE HIRANMAY BHATTACHARYYA


                                   M.A.T. No.677 of 2022
                                         With
                               I.A. No.CAN 1 of 2022

                           Prasanna Kumar Thakkar.
                                      Vs.
     Director, Directorate General of Goods and Services Tax Intelligence,
                           Kolkata Zonal Unit & Ors.


Appearance:-
Mr. Debanuj Basu Thakur                              .....   for the appellant.

Mr. T. M. Siddique,
Mr. Debasish Ghosh,
Mr. D. Sahu                                   ...      for the respondents/State.

Mr. Bhaskar Prosad Banerjee,
Mr. Tapan Bhanja                                     ... for the respondent no.1

                                  JUDGMENT

(Judgment of the Court was delivered by T.S. SIVAGNANAM, J.)

1. The appellant has already put in the deficit court fees

vide filing no.A-14993 in the department. In view thereof, the

defect, as pointed out by the Additional Stamp Reporter stands

removed.

2. This intra-Court appeal is directed against the order dated

16th November, 2021 passed in W.P.A. No.1474 of 2021. By the

said order, the prayers sought for by the appellant / writ

petitioner for grant of an interim order pending disposal of the

writ petition has been negated.

3. We have elaborately heard the learned Advocates appearing

for the parties. The learned Advocate appearing for the

appellant would submit that the writ petition itself can be

disposed of by this Court and the appellant / writ petitioner

does not for the time being press the prayer (a) in the writ

petition, which is for issuance of a writ of declaration that

the provisions of Section 16(2)(c) and 16(2)(d) of the Goods and

Services Tax Act, 2017 is unconstitutional, irrational and

arbitrary. The said submission is placed on record and the said

prayer for declaration stands struck off.

4. The appellant is aggrieved by the action of the respondents

in allegedly recovering tax without issuance of any order under

Section 74(9) of the Central Goods and Services Tax Act, 2017.

The appellant would further contend that without intimating the

appellant the reason, the input tax credit ledger has been

blocked. Therefore, it is submitted that the action initiated

by the respondent department is arbitrary, unreasonable and

against the provisions of the Act.

5. The learned standing counsel appearing for the respondent

department, on the other hand, would submit that during the

course of investigation, it is the appellant, who had

voluntarily came forward to deposit a sum of Rs.40 lakhs and the

appellant cannot be heard to say that it is the department,

which has effected such recovery. Further, the learned standing

counsel, on instruction, submitted that the department is in the

process of issuing show cause notice and the same would be

shortly issued.

6. Considering the above facts and circumstances, we are of

the view that this appeal and the writ petition can be disposed

of with the following directions:-

(i) The respondent / department is directed to issue

show cause notice to the appellant within 15 days

from the date of receipt of the server copy of this

order granting not less than 10 days from the date

of receipt of the show cause notice to submit a

reply by the appellant. It is thereafter the show

cause notice shall be adjudicated and a speaking

order be passed on merits and in accordance with

law.

(ii) Till the aforementioned exercise is completed, the

respondent / department is directed not to initiate

any coercive action against the appellant.

(iii) With regard to the submission that the appellant's

input tax credit ledger has been blocked, the same

is an independent issue and cannot be considered in

this writ petition. However, liberty is granted to

the appellant to work out his remedies in accordance

with law on the said issue.

7. The appeal along the connected application as well as the

writ petition are disposed of.

8. No costs.

9. Urgent photostat certified copy of this order, if applied

for, be furnished to the parties expeditiously upon compliance

of all legal formalities.

(T. S. SIVAGNANAM, J)

I agree,

(HIRANMAY BHATTACHARYYA, J.)

NAREN/PALLAB(AR.C)