The Calcutta High Court presided over the requirement to reverse accumulated credit by on-going real estate projects opting for a concessional rate of GST.
The petitioner has preferred a writ petition being aggrieved by Rule 42 (4)(c) introduced vide Notification No. 16/2019 Central Tax dated March 29, 2019, as also the second proviso of Column 5 and Paras 1(a) and 1(e) of Annexures I and II of Notification No.3/2019 – IT dated March 29, 2019.
The Petitioner submitted that directing to reverse accumulated credit is akin to directing to pay tax and such power could never have been exercised by a delegatee since direction to pay tax is a substantive aspect and is not delegable.
Mr. Sujit Ghosh, Counsel for the petitioner, relying upon the host of constitutional bench judgments, the Petitioner counters Revenue’s objection to the maintainability of the writ petition in absence of a show-cause notice stating that a writ petition under Article 226 is maintainable even without SCN issuance as there is the likelihood of an illegal tax assessment as also the exercise of legislative power beyond the legislative competence which has given rise to a cause of action.
The single-judge bench of Justice Shekhar B. Saraf allowed the parties to file affidavits and remarks that the point of maintainability of the writ petition shall be kept open.
The court also granted interim relief with liberty to file an application in this writ petition if any coercive step is taken against Petitioner.
The matter was listed in March, 2021.
