Appellate Authority under CGST Act Cannot Suo Moto Enhance Tax Liability: Calcutta HC

The Calcutta High Court ruled that the Appellate Authority under the CGST Act cannot suo motu enhance tax liability without following the procedure outlined in Section 107(11) of the CGST/WBGST Act. The court set aside the orders passed by the appellate and adjudicating authorities and remanded the matter for fresh consideration. The case involved an assessee whose tax liability was increased by the Appellate Authority without proper procedural compliance. The court emphasized that any enhancement of tax liability must be preceded by a notice to the assessee and an opportunity for a hearing. This ruling aims to ensure fairness and due process in tax adjudication, preventing arbitrary increases in tax liability without proper justification. The decision reinforces the importance of procedural safeguards in tax administration.