CMP Euro Technoplast Pvt Ltd thr. Vs Union of India thr. (Bombay High Court)
Bombay High Court sets aside rejection of refund claim in plastic toys classification dispute; remands matter to appellate authority for fresh decision.
The petitioner is a manufacturer of plastic toys. It initially classified the products under HSN Code 9503, attracting a 12% GST. An enquiry by DGGI dated 20.10.2020 led to a reclassification at 18% GST, and the Petitioner, as a precautionary measure, paid the differential tax and interest. Subsequently, relying on an Advance Ruling from the Gujarat AAR which supported the 12% rate for plastic toys, the Petitioner filed a refund application on 06.07.2022. The refund was rejected. Appeal by the appellate authority was also rejected. Hence, writ petition came to be filed.
The Hon’ble Bombay High Court set aside the order and allowed the petition. It held: (i) the GST Tribunal is not functional; hence; petition has been filed; (ii) there was total non-application of mind on part of the appellate authority in not considering the grounds of appeal; (iii) reliance on AAR order was one of the grounds and not the only ground; (iv) the issue of classification has not been addressed; independently; on merits; (v) accordingly; remands the matter back to the appellant authority to pass reasoned orders.
