Case Title | M/s Nexage Innovations Vs The Deputy Commissioner of Customs and Ors. |
Court | Calcutta High Court |
Honorable Judges | Justice T S Sivagnanam |
Citation | 2022 (7) GSTPanacea 102 HC Calcutta MAT 916 of 2022 and CAN 1 of 2022 |
Judgement Date | 07-July-2022 |
Council for Petitioner | Vinay Shraff Priya Sarah Paul |
Council for UOI | |
Council for State | K K Maity Bhaskar Prosad Banerji Tapan Bhanja Ekta Sinha |
Favor | Assessee |
Section | Section 73 and 74 of GST and Customs Act. |
The Calcutta High Court bench of Justice T S Sivagnanam and Bivas Pattanayak has held that on the basis of mere assumptions and absence 0f material evidence, the authority shall not tag any exporter as risky after payment of penalty and reversing the credit suspicious.
FACTS OF THE CASE
In this given case the petitioner is engaged in the business of export. The petitioner was informed by the respondent that the some of suppliers from he purchase the material are under scrutiny in GST department in respect of in-genuine ITC availment, hence the tax credit from him has to be reverse by petitioner. The petitioner is also given risky exporter tag on the export portal. The petitioner against the said communication reversed the ITC along with payment of penalty and communicated to the respondent along with the copy of payment challan and requested to the respondent to remove the risky exporter tag. But the petitioner did not receive the satisfactory communication and conveyed that the investigation against the said supplier are under way. Hence petition filed this writ.
COURT HELD
Considering the facts as recorded, and in considered view, we need not to travel thus far to examine as to what relief the petitioner would be entitled to this writ. The learned council would submit that they no instruction and info as to whether any other info is available with respondent or investigation agency but no . We cannot proceed on the basis of mere assumption that respondent is doubtful on supplier and even if the petitioner reversed the credit and penalty paid there is also no question of protection of interest of government revenue. Hence the writ is disposed by directing the respondent to remove the tag of risky exporter of petitioner until any m material info is not available against the supplier and petitioner as well. The duty drawback hold shall also be issued to the petitioner along with grant of delay in interest.
ANALYSIS OF THE JUDGEMENT
As Taxpayer has fulfilled all the conditions as communicated under any order of authority, it is the duty to adhere the business going concern priority of tax payer.
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