Eastern Metec Pvt. Ltd Vs State of West Bengal & Ors (Calcutta High Court)
The Calcutta High Court has directed the appellate GST authority to re-examine an appeal filed by Eastern Metec Pvt. Ltd., which claims a discrepancy in its Input Tax Credit (ITC) related to bank charges. The company contended that its bank mistakenly filed its GSTR-1 returns on a “business-to-customer” (B2C) basis, treating the company as an unregistered taxpayer. This error led to the company being denied the full ITC it was entitled to.
During the court proceedings, the company presented new documents, including bank statements and communications, to substantiate its claim. While the state’s counsel initially objected to the introduction of new evidence, the court deemed it necessary to ensure a fair resolution. Consequently, the High Court set aside the previous appellate order dated November 17, 2023, and quashed the subsequent demand notice. The matter has now been sent back to the appellate authority to reconsider the appeal, taking into account the fresh evidence provided by the petitioner. The decision emphasizes the importance of proper classification of taxpayers and the necessity for authorities to consider all relevant evidence.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
