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Right To File Statutory Appeal Is Mandatory Before Initiating Any Recovery Proceeding: In Calcutta High Court

In the case of Purulia Metal Casting Pvt. Ltd. vs. Asst. Commissioner of State Tax, Purulia Charge &Ors.(W.P.A. 14286 of 2022), the Calcutta High Court bench of Honorable Justice Md. Nizamuddin ruled that the right to submit a statutory appeal is required before beginning any recovery procedure.

Facts of the case:

The demand collection action resulting from the adjudication order by debiting from the electronic credit ledger has been contested by the petitioner/assessee. Without providing the petitioner with the option to file a statutory appeal, which is required before starting any recovery proceedings, the demand violated Section 78 of the WBGST Act, 2017.

According to the petitioner, the adjudication ruling was issued on December 14, 2021, but the respondent agency only recovered the disputed demand after 16 days, clearly in violation of Section 78 of the Income Tax Act.

Court’s Findings:

In the amount in question, which had to be submitted as a pre-deposit for the filing of an appeal against the adjudication ruling, the court ordered the department to reimburse the money it had collected in excess of demand within 15 days of the date. The petitioner must file an appeal against the adjudication order within 15 days after the date, per the court’s requirement. The appellate authority will take a tolerant stance when considering the problem of limitation if the petitioner files an appeal within the allotted time.

“The respondent authorities concerned are free to take action in the future to once again satisfy the in question demand if the petitioner does not file an appeal within the allotted time. Since the deadline for filing an appeal online has passed, the petitioner is free to do so offline “The judge stated.

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Judgement Reviewed By Manju Molakalapalli.

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