Case Law Details
Indorama India Pvt. Ltd. Vs State of West Bengal & Ors. (Calcutta High Court)
In Indorama India Pvt. Ltd. vs State of West Bengal & Ors., the Calcutta High Court dealt with a challenge to an appellate order passed under Section 107 of the Central Goods and Services Tax Act, 2017, which had set aside a refund sanction granted earlier.
The petitioner had filed a refund application in Form GST-RFD-01 dated December 29, 2022, seeking refund of ₹1,04,37,127 towards Integrated GST paid on ocean freight for imports during November 2018. This claim was based on the ruling of the Supreme Court in Union of India vs. Mohit Minerals Pvt. Ltd.. The refund sanctioning authority allowed the claim on February 24, 2023. However, the department filed an appeal under Section 107, which was allowed by the appellate authority on April 26, 2024.
The appellate authority’s decision was based on the finding that there was no proper analysis or conclusive determination regarding whether the shipping lines involved were foreign or Indian. Although the petitioner had submitted a bill of lading to support its claim that foreign shipping lines were used, the authority found the document illegible and insufficient to substantiate the claim.
Before the High Court, the petitioner submitted that it was willing to produce a legible copy of the bill of lading and any other required documents. The Court observed that, in the interest of justice, the petitioner should be given an opportunity to present proper evidence so that the matter could be decided on merits.
Accordingly, the Court directed the appellate authority to reconsider the case afresh after allowing the petitioner to submit a legible bill of lading and any other relevant documents. The authority was instructed to complete the proceedings within one month.
The writ petition was disposed of with these directions.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
The petitioner challenges an order of the appellate authority dated April 26, 2024, passed under Section 107 of the Central Goods and Services Tax Act, 2017, by which the appellate authority rejected a refund sanction order dated February 24, 2023, passed under Section 64 of the Central Goods and Services Tax Act, 2017.
It appears that the petitioner submitted a refund application in the prescribed form GST-RFD-01 dated December 29, 2022, for a refund of Rs. 1,04,37,127/- of Integrated Goods and Services Tax paid on the ocean freight component for imports between November 1, 2018, and November 30, 2018, following the judgment of the Hon’ble Supreme Court in the case of Union of India vs. M/s. Mohit Minerals Pvt. Ltd., reported at 2022 (61) G.S.T.L. 257 (SC).
The refund sanctioning authority, by an order dated February 24, 2023, allowed the refund. The department, however, preferred an appeal under Section 107 of the Central Goods and Services Tax Act, 2017.
The essential ground on which the appeal was allowed is apparent from paragraph 5.4.4 of the order of the appellate authority. The said para 5.4.4 is quoted below:
“5.4.4 However, agreeing with the view of the Reviewing Authority I find that RSA has neither made any analysis nor given any findings as to whether the Shipping Lines involved in this case were Foreign Shipping Lines or Indian Shipping Lines. The respondent in their reply dated 16.10.2023 stated that in the instant case, foreign shipping line was engaged by the foreign supplier. And according to them to evident the said fact they enclosed bill of lading wherein in the details of the shipping line involved is clearly mentioned. But that enclosed bill is not legible at all to correlate and substantiate the claim of the respondent.”
Mr. Majumdar, learned senior advocate appearing for the petitioner, submits that the petitioner is prepared to produce a legible copy of the Bill of Lading before the appellate authority for consideration.
This Court is of the view that, in the facts of the case, the petitioner should be provided with such an opportunity so that the case can be considered afresh on merits.
In view of the aforesaid, I direct the appellate authority to consider the case of the petitioner, giving an opportunity to produce a legible copy of the Bill of Lading and any other documents required for consideration by the appellate authority in deciding the appeal.
The appellate authority shall conclude the proceedings in terms of this order within one month from date.
Accordingly, WPA 18046 of 2024 is disposed of.
Urgent certified website copies of this order, if applied for, be made available to the parties upon compliance with the requisite formalities.
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