Pr. Commissioner CGST & CX Vs North Bengal Tea & Allied. (GSTAT Kolkata)
Summary: The present Revenue appeal before the GSTAT, Kolkata Bench arose under sub-section (1) of Section 112 of the Central Goods & Services Tax Act, 2017 against Order-in-Appeal No. 425/SLG-GST/2024-25 dated 25.11.2024. The respondent, M/s North Bengal Tea & Allied, had earlier appealed against the Order-in-Original bearing Ref. No. ZE1910230244270 dated 19.10.2023. The substantive dispute concerned refund of accumulated input tax credit under Section 54(3)(ii) on account of inverted duty structure.
The respondent is engaged in purchasing tea in bulk, blending it and selling it in packaged form in containers, pouches, jars and sachets. Bulk tea attracted GST at 5%, while packing materials attracted GST at 12% or 18%, and the packaged tea supplied by the respondent attracted GST at 5%. For the period from 01.03.2021 to 30.11.2021, the respondent claimed refund of accumulated ITC amounting to Rs.7,83,547/-. During scrutiny, deficiencies were noticed and a Show Cause Notice was issued. The original adjudicating authority ultimately sanctioned Rs.7,77,858/- out of the total refund claim of Rs.7,83,547/- by Refund Sanction Order dated 19.10.2023.
The original adjudicating authority appealed, but the first Appellate Authority allowed the respondent’s refund claim and upheld the impugned order through Order-in-Appeal No. 425/SLG-GST/2024-25 dated 25.11.2024. The Revenue thereafter challenged that decision before the Tribunal.
