The Calcutta High Court has held that the rejection of the renewal of the eligibility certificate will render the petitioner/dealer ineligibility for output tax for discharging the liability the dealer will have to pay the taxes.
The bench of Chief Justice T. S. Sivagnanam and Justice Chaitali Chatterjee (Das) has observed that the claim of the petitioner/dealer to adjust the carry forward input tax which was carried forward to the subsequent quarter is not feasible as there is no such provision under the West Bengal Value Added Tax Act, 2003.
The petitioner/assessee had challenged the order passed by the Fast Track Revisional Authority, Bench-I, Government of West Bengal dated August 25, 2021 by which the writ petitioner challenged the appellate order dated 13.8.2018 passed by the Joint Commissioner, Commercial Taxes, Kolkata South Circle who confirmed the assessment order passed by the Deputy Commissioner, Commercial Taxes, Park Street Charge.
The issue which fell for consideration before the authorities as well as the tribunal was whether the petitioner was right in his contention that the output tax demand for the period during which the eligibility certificate was not renewed or rejected, namely, 4.3.2015 to 31.3.2015 could be adjusted with the forwarded accumulated input tax credit.
The authorities after noting the facts concurrently held that the question of adjustment with the forwarded accumulated input tax credit cannot be considered because there is no provision under the West Bengal Value Added Tax Act, 2003 where input tax credit already carried forward to the next year can be brought back and adjusted with the output tax.
The tribunal tested the correctness of the orders passed by the assessing officer as affirmed by the appellate authority and further affirmed by the revisional authority.
The tribunal dismissed the writ petition.
Case Details
Case Title: Crescent Manufacturing Pvt. Ltd. Vs The Fast Track Revisional Authority Bench I And Ors.
Case No.: WP.TT/4/2025
Date: 25.02.2025
Counsel For Petitioner: Sandip Choraria
Counsel For Respondent: Anirban Ray
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