Assessee cannot be asked to approach appellate authority if it was not made a party to original application

Gayatri Projects Limited & anr. Vs Assistant Commissioner of State Tax (Calcutta High Court)

The Hon’ble Calcutta High Court in the matter of M/s. Gayatri Projects Limited & anr. v. The Assistant Commissioner of State Tax, Durgapur Charge & Ors. [M.A.T No.2027 of 2022 with I.A. No. CAN 1 of 2022 dated January 5, 2023] set aside the ruling passed by the AAR denying ITC to the buyer and remanded the matter back for fresh consideration. Held that, where sufficient factual details were not placed before the AAR, the assessee should not be left remediless, without hearing them. Further held that, directing the assessee to prefer an appeal will not be effective as the facts, which it seeks to bring on record were not a part of the records before the original authority.

Facts:

An Advance Ruling was sought by Eastern Coalfields Limited (“the Respondent”), wherein, the AAR, West Bengal vide order dated August 9, 2021 (“the Impugned Order”) ruled that the Respondent was not entitled for Input Tax Credit (“ITC”) on the invoices raised by M/s. Gayatri Projects Limited (“the Appellant”).

The Appellant had issued invoices to the Respondent for the months January – March, 2020 for which returns were filed in November 2020 and therefore the Respondent had to reverse the ITC. The Appellant was not heard by the AAR, as they were not made a party to such application even though they had raised the invoices for which the ITC was claimed.

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