Case Details: Silverton Metals Pvt. Ltd. vs. Joint Commissioner, Central Tax, Haldia CGST & CX Commissionerate (2026) 38 Centax 218 (Cal.)
Judiciary and Counsel Details
- Om Narayan Rai, J.
- S/Shri Vinay Kumar Shraff, Dev Kumar Agarwal & Abhilash Mishra, Advs., for the Petitioner.
- S/Shri Uday Shankar Bhattacharya & Anurag Ray, Advs., for the Respondent.
Facts of the Case
The assessee was issued a show cause notice alleging the availment of irregular input tax credit on the basis of invoices purportedly issued by non-existent entities. In the notice, the extended period of limitation was specifically invoked only in relation to such availment of irregular input tax credit, with express reference to invoices issued by non-existent entities against whom an alert circular had been issued by the Kolkata South and Kolkata North Commissionerate. The assessee contended that the invocation of the extended period was confined to this allegation alone and could not be applied to other demands or claims raised in the same notice under different heads by the CGST authorities. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that a specific reference in the show cause notice invoking the extended period of limitation, only in relation to alleged availment of irregular input tax credit on the basis of invoices issued by non-existent entities, prima facie excluded the application of the extended period to other claims made in the same notice. However, it was held that a final view on this issue could be taken only after hearing the respondent authorities in full. The Court observed that since proceedings in respect of a major part of the claim might not have been initiated by invoking the extended period, the CGST authorities should not proceed to recover any sum pursuant to the order-in-original until the next date of hearing. Accordingly, interim protection was granted in favour of the assessee.
