Ipsen Technologies Private Limited Vs Commissioner of CGST And CX Kolkata South Commissionerate (Calcutta High Court)
Calcutta High Court has intervened in a tax dispute involving Ipsen Technologies Private Limited, setting aside an order from the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) and directing a refund to the assessee. The High Court’s decision hinges on a crucial typographical error by the Tribunal that led to an unnecessary remand of the case for considering ‘unjust enrichment,’ an issue not originally raised by the department.
The appeal was filed by Ipsen Technologies under Section 35G of the Central Excise Act, 1944, challenging two CESTAT orders: one from September 4, 2024, and a rectification order from February 11, 2025. The core of the dispute revolved around the rejection of Ipsen Technologies’ refund claim by the Commissioner of CGST & CX, Kolkata, which was subsequently affirmed by the Appellate Authority. The initial rejection was based on an alleged violation and misinterpretation of various circulars and rules related to service tax and GST.
Background of the Dispute
Ipsen Technologies had sought a refund for service tax paid under the Reverse Charge Mechanism (RCM). The adjudicating authority and the appellate authority had rejected this claim, citing misinterpretation of Circular No. 207/5/2017-Service Tax dated September 28, 2017, read with Section 142(9)(b) of the CGST Act, 2017, Rule 7 of the Point of Taxation Rules, 2011, and Rule 7B of the Service Tax Rules, 1994. The provisions of Section 174 of the CGST Act, 2017, were also deemed applicable.
