Order Date - 09 July 2025

Parties: Tara Lohia Private Limited v. Additional Commissioner, CGST & CX, Kolkata South Commissionerate & Anr.

Facts -

• The Petitioner, Tara Lohia Private Limited, challenged an order dated 29.01.2025 under Section 74 of the CGST/WBGST Act for the period July 2017–March 2022. The show cause notice was issued based on an audit under Section 65, alleging irregular ITC claims under various heads.
• The petitioner contended that payments were made within 180 days (except for one creditor), and failure to submit bank proof was due to lack of specific demand. The officer allegedly failed to properly consider this.

Issue -

• Whether the denial of ITC based on audit observations and lack of supporting documents can be challenged under Article 226 despite availability of appellate remedy?

Order -

• The Single Bench of the Hon’ble High Court found that if during audit the respondents had failed to notice such documents, it was the obligation and the onus of the petitioner to place such documents before the authorities. The same has not been done. Admittedly, there is nothing on record even today at this stage to substantiate the fact that the payments made by the petitioner to the sundry creditors were, in fact, made within 180 days from the date of the invoices.
• What the petitioner seeks to challenge is an error committed by the proper officer while considering the materials on record.  The Court cannot enter into such disputed questions in an application under Article 226 of the Constitution of India.
• With the above observations writ petition disposed of.