M/S. Indorama INDIA PVT. LTD. (Formerly, Irc Agrochemical PVT. LTD.) vs. The State Of West Bengal And Ors.
Original PDF →Facts
The petitioner, M/s. Indorama India Pvt. Ltd., formerly IRC Agrochemical Private Limited, filed a writ petition challenging an order dated April 26, 2024, passed by the appellate authority under Section 107 of the Central Goods and Services Tax Act, 2017. This order overturned a refund sanction order dated February 24, 2023, issued under Section 64 of the same Act. The petitioner had sought a refund of Rs. 16,18,758/- for Integrated Goods and Services Tax paid on ocean freight for imports between February 1, 2019, and February 28, 2019, relying on the Supreme Court's decision in Union of India vs. M/s. Mohit Minerals Pvt. Ltd. The refund was initially allowed by the refund sanctioning authority. However, the department appealed, and the appellate authority rejected the refund, citing illegibility of the Bill of Lading provided as evidence that a foreign shipping line was engaged by a foreign supplier.
Held
The Court held that in the given facts and circumstances, the petitioner should be provided with an opportunity to produce a legible copy of the Bill of Lading and any other necessary documents before the appellate authority. The Court reasoned that this would allow for a fresh consideration of the case on its merits. The ratio decidendi is that procedural fairness requires an opportunity to rectify defects in documentary evidence, especially when the defect is illegibility, to ensure a just and proper adjudication of the refund claim. The Court directed the appellate authority to consider the petitioner's case afresh, allowing them to submit legible documents, and to conclude the proceedings within one month from the date of the order. The specific issue of whether the shipping lines were foreign or Indian, and the refund eligibility based on that, was not decided on merits but was remanded for reconsideration.
Key Issues
1. Whether the appellate authority erred in rejecting the refund claim solely on the grounds of illegibility of the Bill of Lading, without providing an opportunity to the petitioner to submit a legible copy, thereby violating principles of natural justice, under Section 107 of the Central Goods and Services Tax Act, 2017? Petitioner's Contention: The petitioner argued that they are prepared to produce a legible copy of the Bill of Lading before the appellate authority for consideration. They implicitly contended that the appellate authority's rejection based on illegibility, without allowing a chance to rectify, was an error. Revenue/State's Contention: The judgment quotes the appellate authority's order which noted that the respondent (petitioner) stated a foreign shipping line was engaged and enclosed a Bill of Lading. However, this Bill of Lading was not legible, and the appellate authority agreed with the Reviewing Authority that no analysis or findings were made regarding whether the shipping lines were foreign or Indian. The revenue's argument, as reflected in the appellate order, is that the evidence provided was insufficient due to illegibility.
Sections Cited
Section 107, Section 64
AI-generated summary — verify with the full judgment below
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18-03-2026 AKG Ct. 237
WPA 18065 of 2024
M/s. Indorama India Pvt. Ltd. (Formerly, IRC Agrochemical Private Limited) Vs. The State of West Bengal & Ors.
Mr. Abhratosh Majumdar, Mr. Avra Mazumdar, Ms. Alisha Das, Ms. Rupomita Ghosh …for the Petitioner Mr. Manasi Mukherjee, Mr. Bijitesh Mukherjee, …for the CGST Mr. Tanoy Chakraborty, Mr. Saptak Sanyal …for the State
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. 16,18,758/- of Integrated Goods and Services Tax paid on the ocean freight component for imports made between February 1, 2019, and February 28, 2019, 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).
2 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
3 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 the date of this order. Accordingly, WPA 18065 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. (Kausik Chanda, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.