Union Of INDIA And Ors. vs. Sicpa INDIA Private Limited And Ano.
Held
The Division Bench allowed the appeal, setting aside the Single Judge's order. It held that the writ petition was not maintainable due to insufficient factual material from SICPA and that accumulated ITC upon business closure must be reversed under Section 29(5) of the CGST Act, not refunded under Section 49(6) read with Section 54.
Facts
SICPA India Private Limited sought a refund of unutilised Input Tax Credit (ITC) amounting to Rs. 4,37,61,402/- upon discontinuing its business operations. The tax authorities rejected the refund claim, but a Single Judge allowed SICPA's writ petition, prompting the Union of India to file this appeal.
Key Issues
Whether unutilised Input Tax Credit can be refunded under Section 49(6) read with Section 54(3) of the CGST Act upon discontinuance of business, or if it must be reversed under Section 29(5).
Sections Cited
Section 49(6), Section 54(3), Section 54(4), Section 29(5)
AI-generated summary — verify with the full judgment below
THE HIGH COURT OF SIKKIM: GANGTOK (Civil Appellate Jurisdiction)
------------------------------------------------------------------------------------------ DIVISION BENCH: THE HON’BLE MR. JUSTICE BISWANATH SOMADDER, CHIEF JUSTICE THE HON’BLE MR. JUSTICE BHASKAR RAJ PRADHAN, JUDGE ----------------------------------------------------------------------------------------- W.A. No. 02 of 2025
Union of India, Through the Secretary, Department of Revenue, Ministry of Finance, North Block, New Delhi – 110001. 2. The Commissioner of Central Goods and Services Tax & Central Excise, GST Bhawan, Haren Mukherjee Road, Hakimpara, Siliguri, West Bengal – 734001. 3. The Additional Commissioner of Central Goods and Services Tax & Central Excise, Siliguri Appeal Commissionerate, Siliguri GST Bhawan, Haren Mukherjee Road, Hakimpara, Siliguri, West Bengal – 734001. 4. The Assistant Commissioner, Central Goods and Services Tax & Central Excise, Gangtok Division, Indira Bye Pass, Near District Court, Sichey, Gangtok, East Sikkim – 737101.
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Sikkim High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.