Facts of the Case: The State of West Bengal filed a petition before the Calcutta High Court seeking revision under Section 108 of the CGST/WBGST Act, 2017 against an order passed by the appellate authority for the period 2020-21.

The State contended that the appellate authority failed to consider material facts relating to inadmissibility of Input Tax Credit (ITC) under Section 16(4), resulting in an alleged mismatch of ₹1.11 crore (IGST, CGST, and SGST combined).

On examining the records, the Court noted that the original show-cause notice issued under Section 73 did not contain any demand for IGST and the CGST and SGST demands were also below the figures claimed in the revision.

Issue: Whether the revisional authority, while exercising power under Section 108 of the CGST/WBGST Act, can travel beyond the scope of the original show-cause notice to improve or enhance the demand.

Held that: The Court held that the power of revision under Section 108 is confined to correcting erroneous orders passed by subordinate authorities which are prejudicial to the interest of revenue. The revisional authority cannot improve upon or expand the scope of the original show-cause notice. What cannot be done directly cannot be permitted indirectly.

Since the show-cause did not contain any IGST demand and the CGST/SGST figures were different, there was no basis for including such amounts in the revision. The prayer of the State was unjustified; the application seeking revision was dismissed.

Case Name: Dinesh Infraprojects (P.) Ltd. v. State of West Bengal dated 08.08.2025

To read the complete judgment 2025 Taxo.online 2022