Case BriefsHigh Courts

Calcutta High Court: The Division Bench of T. S. Sivagnanam and Hiranmay Bhattacharyya, JJ., dismissed an appeal and connected application which was filed by the State against  the order of detention passed by the authority detaining two trucks containing consignment of steel and other products in WPA 17611 of 2021 dated: 07-12-2021 wherein petitioner was the wife of late Mohit Madhogoria, who was a registered dealer under the provisions of the W.B.V.A.T. Act presently under the GST Act.

The Single Judge in the impugned order had directed the release of the goods along with vehicle taking note of the fact that the appellant who was the wife of the deceased dealer had paid 100% of the disputed tax and further 10% of the disputed tax. The Single Judge had concluded that the fact that as of now the GST Tribunal was not functional and had the avenue of appeal been available to the appellant, the appellant would have been required to pay 100% of the admitted tax and 10% of the disputed tax for her appeal to be entertained.

Counsel for the State strenuously contended that in terms of Section 129 of the CGST Act, 2017, the penalty would be 200% of the tax and since the appellant was not a registered dealer, the revenue could not take steps to recover the balance and, therefore, the appellant should be put on further terms by directing her to execute a bond and also other means to secure the interest of revenue.

Counsel for the respondent submitted that the respondent’s husband was a registered dealer under the GST Act and he had an untimely death and the respondent was taking steps to register herself as a dealer in the place of her husband and as on date she has stepped into the shoes of her husband drawing attention of the Court to Section 93 of the W.B.GST Act, 2017 which speaks of the liability of the legal representatives of the other persons in the case of death of a registered dealer.

Court was of the view that technical objection raised by the appellant had to be agitated before the Single Judge as the appellant has been given an opportunity to file an affidavit-in-opposition.

The Court had to decide whether the interest of revenue had been reasonably safeguarded to which the Court opined that the respondent having paid the 100% of the admitted tax and further 10% of the disputed tax, the interest of revenue has been safeguarded, for the present. The court however clarified that this order shall not be treated as laying down a legal principle or treated as a precedent as this court had not interpreted the provisions of Section 129 of the Act and rendered this decision but it was based on the fact that respondent was the wife of the deceased dealer and also that she was yet to be formally recognized as a dealer by substituting her name in the Registration Certificate for which specified procedure had to be followed.

The instant appeal and the connected application was dismissed.[Deputy Commissioner v. Nidhi Madhogaria, MAT 1332 of 2021, decided on 18-02-2022]


Mr A. Ray, G.P., Mr T. M. Siddiqui, Mr Debasish Ghosh… for the appellant State

Ms Rita Mukherjee, Mr Rowsan Kumar Jha, Mr Abhijat Das… for the respondent


Suchita Shukla, Editorial Assistant has reported this brief.

Legislation UpdatesStatutes/Bills/Ordinances

The Direct Tax Vivad se Vishwas Act, 2020 is an Act of Parliament that received assent of President on 17-03-2020.

It is an Act to provide for resolution of disputed tax and for matters connected therewith or incidental thereto.


The Direct Tax Vivad se Vishwas Bill, 2020 for dispute resolution related to direct taxes was provided for the following, namely:—

(a) The provisions of the Bill shall be applicable to appeals filed by taxpayers or the Government, which are pending with the Commissioner (Appeals), Income-tax Appellate Tribunal, High Court or Supreme Court as on the 31st day of January, 2020 irrespective of whether demand in such cases is pending or has been paid;

(b) the pending appeal may be against disputed tax, interest or penalty in relation to an assessment or reassessment order or against disputed interest, disputed fees where there is no disputed tax. Further, the appeal may also be against the tax determined on defaults in respect of tax deducted at source or tax collected at source;

(c) in appeals related to disputed tax, the declarant shall only pay the whole of the disputed tax if the payment is made before the 31st day of March, 2020 and for the payments made after the 31st day of March, 2020 but on or before the date notified by Central Government, the amount payable shall be increased by 10 per cent of disputed tax;

(d) in appeals related to disputed penalty, disputed interest or disputed fee, the amount payable by the declarant shall be 25 per cent. of the disputed penalty, disputed interest or disputed fee, as the case may be, if the payment is made on or before the 31st day of March, 2020. If payment is made after the 31st day of March, 2020 but on or before the date notified by Central Government, the amount payable shall be increased to 30 per cent. of the disputed penalty, disputed interest or disputed fee, as the case may be.

Copy of the Act: The Direct Tax Vivad se Vishwas Act, 2020


Ministry of Law and Justice

Legislation UpdatesStatutes/Bills/Ordinances

The Direct Tax Vivad se Vishwas Bill, 2020 was introduced in Lok Sabha by the Finance Minister Nirmala Sitharam on 05-02-2020.

A bill to provide for the resolution of disputed tax and for matters connected therewith or incidental thereto.

This will not only benefit the Government by generating timely revenue but also the taxpayers who will be able to deploy the time, energy and resources saved by opting for such dispute resolution towards their business activities.

The Direct Tax Vivad se Vishwas Bill, 2020 for dispute resolution related to direct taxes provides for the following, namely:—

(a) The provisions of the Bill shall be applicable to appeals filed by taxpayers or the Government, which are pending with the Commissioner (Appeals), Income-tax Appellate Tribunal, High Court or Supreme Court as on the 31st day of January, 2020
irrespective of whether demand in such cases is pending or has been paid;

(b) the pending appeal may be against disputed tax, interest or penalty in relation to an assessment or reassessment order or against disputed interest, disputed fees where there is no disputed tax. Further, the appeal may also be against the tax determined on defaults in respect of tax deducted at source or tax collected at source;

(c) in appeals related to disputed tax, the declarant shall only pay the whole of the disputed tax if the payment is made before the 31st day of March, 2020 and for the payments made after the 31st day of March, 2020 but on or before the date notified by Central Government, the amount payable shall be increased by 10 per cent of disputed tax;

(d) in appeals related to disputed penalty, disputed interest or disputed fee, the amount payable by the declarant shall be 25 per cent. of the disputed penalty, disputed interest or disputed fee, as the case may be, if the payment is made on or before the 31st day of March, 2020. If payment is made after the 31st day of March, 2020 but on or before the date notified by Central Government, the amount payable shall be increased to 30 per cent. of the disputed penalty, disputed interest or disputed fee, as the case may be.


To read the Bill, Please click on the link below:

The Direct Tax Vivad se Vishwas Bill, 2020