A Division Bench of the Calcutta High Court recently remanded a Goods and Services Tax (GST) matter to the adjudicating authority to reconsider the denied Input Tax Credit (ITC) claim of the appellant on grounds of canceled GST registration of the other end dealer.
A writ petition was filed challenging an order passed by the authority under Section 74(9) of the West Bengal Goods and Services Tax Act, 2017, after the decision of which, the appellant preferred the present intra-court appeal.
The adjudicating authority had initially issued show cause notice to which the appellant had submitted his reply and the personal hearing was fixed on 20th June, 2022. Further, it appears that the appellant did not appear on the said date and it is stated that due to inadvertence.
The appellant had overlooked the date and immediately on 21st June, 2022 submitted a representation tendering unconditional apology and requesting that they may be granted one more chance to appear before the authority and submit documents as was called upon to the appellant by the adjudicating authority. However, on 21st June, 2022, an order has been passed, against the availment of Input Tax Credit by the appellant.
The fact that the Input Tax Credit (ITC) has been denied to the appellant on the ground that the registration of the other end dealer was canceled and according to the appellant, there were sufficient documents to show that the transactions done by them are genuine, was noted by the Division Bench of Justice T S Sivagnanam and Justice Hiranmay Bhattacharyya.
The Court opined that, “one more opportunity should be granted by the adjudicating authority and decision should be taken on merits after considering the documents that may be placed by the appellant before the authority”, quashing the impugned order denying the Input Tax Credit Claim.
The Calcutta High Court thus remanded the matter back to the authority for fresh consideration.
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