In WPA 22902 of 2023 -CAL HC- Calcutta High Court quashes duplicate show cause notice issued by WBGST authority against Dalam Tracon Pct. Ltd.
Justice Md. Nizamuddin [03-10-2023]

Read Order: Dalam Tracon Pct. Ltd v. The Assistant Commissioner of State Tax, Behala Charge & Ors

Chahat Varma

New Delhi, October 13, 2023: The Calcutta High Court has ruled in favour of Dalam Tracon Pct. Ltd. (petitioner), by quashing a duplicate show-cause notice issued by the West Bengal Goods and Services Tax (WBGST) authority. This notice was based on the same grounds as a previous notice, that had been dropped by the authorities after considering the petitioner's response and documents.

The brief background of the case was that in the present writ petition, the petitioner had challenged a show cause notice dated 27th July, 2023, issued by the WBGST authority. The petitioner's contention was that a similar notice was issued on 16th May, 2023, but was subsequently dropped after the petitioner submitted a response.

The single-judge bench of Justice Md. Nizamuddin observed that the second show cause notice, which had the same allegations as the earlier one, that was dropped by the GST authority after the petitioner's reply and document submission, was not legally sustainable.

Consequently, the bench quashed the impugned show cause notice dated 27th July, 2023.

However, the court clarified that while they quashed the particular notice in question, this action should not be seen as a prohibition on the GST authority from issuing a new notice in the future based on different grounds if such grounds exist.