2025(04)LCX0166

Aditya Craft & Papers Private Limited

Versus

Principal Commissioner CGST & Central Tax

W.P.(C) No. 6441 of 2025 decided on 22-04-2025

IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) No.6441 of 2025

M/s. Aditya Craft & Papers Private    …. Petitioner
Limited
                                        Represented by Adv.–
            Mr. Bibekanand Mohanti, Senior Advocate
                    Mr. Ashish Kumar Samal, Advocate

-Versus-

Principal Commissioner, CGST &        …. Opposite Parties
Central Tax, Bhubaneswar and others
                                                        Represented by Adv.–
                        Mr. Ch. S. Misra, Senior Standing Counsel

CORAM:
HON’BLE THE CHIEF JUSTICE
AND
HON’BLE MR. JUSTICE MURAHARI SRI RAMA

ORDER
22.04.2025

W.P.(C) No.6441 of 2025

1. It is submitted by Mr. Bibekanand Mohanti, learned Senior Advocate that the adjudicating authority has proceeded to assess the petitioner by initiating proceeding under Section 74 of the Central Goods and Services Tax Act, 2017 (“CGST Act”). He submits that the petitioner has reversed the input tax credit to the tune of Rs.1,49,729/- which it availed in the year 2017-18 (i.e., first year of introduction of said Act) and paid the amount prior to initiation of audit process. However, in the assessment, without having regard to the ingredients of Section 74(1) and the fact of deposit being made prior to institution of audit, not only a demand of interest under Section 50(3) of the CGST Act has been levied but also imposed penalty. He urged that had the authority proceeded to undertake assessment under Section 73, the petitioner would have the opportunity to avail the benefit of notification dated 15th October, 2024. He pressed into service paragraph-1.3 of said notification, which reads as under:

“1.3. Further, vide notification No.21/2024-Central tax dated 8th October, 2024, 31.03.2025 has been notified under sub-section (1) of section 128A of CGST Act as the date on or before which the full payment of tax demanded in the notice/ statement/ order needs to be made by the taxpayer in order to avail the benefit of waiver of interest or penalty or both under the said section. Also, for cases where the application is made as per the first proviso to the subsection (1) of the section 128A of CGST Act, the date on or before which the full payment of tax demanded in the order issued by the proper officer redetermining the tax under section 73 of CGST Act needs to be made by the taxpayer, has been notified as six months from the date of issuance of such order by the proper officer redetermining the tax under section 73 of CGST Act.”

2. Mr. Ch. S. Misra, learned Senior Standing Counsel for the GST, Central Excise and Customs sought to justify the action taken by the Central Goods and Services Tax Organisation and seeks four weeks’ time to file counter-affidavit.

3. Since jurisdictional aspect leading to framing assessment under Section 74 of the CGST Act has been questioned, the matter requires consideration. Adequate number of copies of writ petition be served on the Senior Standing Counsel to enable him to file counter-affidavit.

4. List this matter on 17^th June, 2025.

I.A. No.3534 of 2025

5. As an interim measure, the petitioner may deposit the amount of interest within a period of four weeks from today. In the event of such deposit being made within the stipulated period, the amount of penalty demanded vide impugned demand order dated 3^rd January, 2025 shall remain stayed till the next date.

( Harish Tandon )
Chief Justice    

( M.S. Raman )
Judge