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.
