Hooghly Motors Pvt. Ltd. Vs State of West Bengal & Ors. (Calcutta High Court)
The Calcutta High Court disposed of a writ petition challenging the rejection of a GST refund claim relating to unutilised input tax credit (ITC) under the West Bengal GST Act, 2017 and the CGST Act, 2017. The petitioner had assailed an appellate order dated 12 December 2024 which upheld an adjudication order dated 11 October 2023 rejecting a refund of ₹8,94,583. The core dispute was whether a “stereo system” installed in e-rickshaws qualifies as an “input” and whether the ITC on its purchase is refundable under the inverted duty structure in terms of clause (ii) of the first proviso to Section 54(3) of the GST Acts.
During the proceedings, the petitioner drew attention to an earlier appellate order dated 30 May 2024 in its own case where, in a similar factual situation, refund had been allowed. That appellate authority had recorded that the petitioner manufactures e-rickshaws (commonly known as TOTO) and that loudspeakers/stereo systems could only be supplied as installed components in the e-rickshaws. On that basis, the inward supply of stereo systems was held to be an inward supply of inputs used in the course or furtherance of business as defined under Section 2(59) of the GST Act.
