GST Appellate Authority Ignored ITC Claim Based on Bank Misclassification: Calcutta HC orders Authority to Reconsider Appeal [Read Order]
The court after noting the nature of the disclosure and its potential impact on the merits of the ITC claim, held that the matter warranted fresh adjudication.
![GST Appellate Authority Ignored ITC Claim Based on Bank Misclassification: Calcutta HC orders Authority to Reconsider Appeal [Read Order]](https://images.taxscan.in/h-upload/2025/07/31/2071381-gst-itc-claim-calcutta-hc-taxscan.webp "GST Appellate Authority Ignored ITC Claim Based on Bank Misclassification: Calcutta HC orders Authority to Reconsider Appeal [Read Order]")
In an important ruling, the Calcutta High Court has set aside an order passed by the GST Appellate Authority after it failed to consider a taxpayer’s input tax credit (ITC) claim arising from a bank’s misclassification. The petitioner, Eastern Metec Pvt. Ltd., challenged the order of the appellate authority dated November 17, 2023, which had dismissed its claim for ITC on...
In an important ruling, the Calcutta High Court has set aside an order passed by the GST Appellate Authority after it failed to consider a taxpayer’s input tax credit (ITC) claim arising from a bank’s misclassification.
The petitioner, Eastern Metec Pvt. Ltd., challenged the order of the appellate authority dated November 17, 2023, which had dismissed its claim for ITC on bank charges.
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According to the petitioner, the rejection is from an error by the bank, which filed GSTR-1 returns by wrongly treating the petitioner as an unregistered customer (B2C) instead of a registered taxpayer (B2B).
Despite producing relevant bank statements and correspondences to substantiate this claim, the appellate authority allegedly failed to consider these documents while deciding the appeal.
Although the State's counsel objected to the introduction of these documents at the writ stage arguing they had not been part of the earlier record the Court noted that the documents had now been made available during the proceedings. However, later the counsel agreed for the re-visit of the appeal.
The court after noting the nature of the disclosure and its potential impact on the merits of the ITC claim, held that the matter warranted fresh adjudication.
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Accordingly, Justice Raja Basu Chowdhury set aside the appellate order and quashed the consequential demand raised in APL-04 dated November 28, 2023.
It also directed the appellate authority to reconsider the appeal afresh in light of the newly disclosed documents, including the bank statements and communications dated October 4, 2018, and December 30, 2019.
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