Case Title: Syama Prasad Mookerjee Port, Kolkata vs. Addl. Commissioner, CGST & CX, Kolkata North Commissionerate & Anr.
Court: Calcutta High Court
Petition No.: FMA/743/2024 with IA No. CAN/1/2024
Date of Judgment: 14.01.2025
Category: Data Migration Error / Rectification of Return / Service Tax to GST Transition
Relevant Sections: Section 174, CGST Act, 2017; legacy Service Tax provisions under Finance Act, 1994
Facts (Para 1–5)
The appellant, Syama Prasad Mookerjee Port, Kolkata, had filed a revised service tax return for October 2016 – March 2017. Due to a system migration issue when the GST regime rolled out, the revised return data was not fully uploaded to the new Integrated ACES-GST Application. The department relied on the incomplete migrated data from the legacy ACES system while raising a demand under the order-in-original dated 16.11.2023.
In an earlier order dated 25.06.2024, the High Court held the writ petition maintainable and directed the department and the Directorate General of Systems & Data Management to verify whether the revised data had correctly migrated and to report accordingly.
Questions before the Court (Para 2–5)
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Whether the service tax demand could stand when the data error arose from incomplete migration of revised return information to the GST system.
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Whether the High Court could direct rectification of such technical discrepancies arising out of system migration.
Observations (Para 4–6)
The Assistant Commissioner (Legal), CGST & CX, Kolkata North Commissionerate, filed an affidavit dated 10.12.2024 confirming that the revised returns were indeed filed by the appellant for the relevant period (October 2016 – March 2017), but the data did not migrate completely into the new Integrated ACES-GST Application. Consequently, the portal reflected only the original return data, creating an artificial discrepancy.
The Court observed that, given this categorical admission, the appellant’s explanation deserved acceptance, and the error lay squarely within the department’s systems.
Judgment (Para 6–11)
The Division Bench comprising Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya held that since the department itself acknowledged the data migration error, the appellant’s case must be accepted. The impugned order was set aside, and the department was directed to rectify the portal and issue a revised order reflecting the correct figures as per the revised return.
The Court clarified that this was not a remand for fresh proceedings but a compliance direction to correct the records and issue a proper revised order within four weeks from the receipt of the judgment.
Summary of Cases Referred
| Case Name | Court | Issue | Verdict |
|---|---|---|---|
| Syama Prasad Mookerjee Port, Kolkata v. Addl. Commissioner, CGST & CX | Calcutta HC | Data migration discrepancy between legacy and GST systems | Demand set aside; rectification ordered; no remand permitted |
Between Fine Lines
This decision underscores that taxpayers should not suffer for system-migration errors during the transition from Service Tax to GST. When departmental systems fail to reflect revised returns or accurate data, the authorities are bound to rectify such discrepancies instead of enforcing demands. The judgment reinforces the Court’s willingness to intervene where technological faults distort tax liability.
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