M/S Recom Equipments And Controls And Anr vs. State Of West Bengal And Ors.
Held
The Court set aside the impugned adjudication order dated 16th August 2023. The Court directed the adjudicating authority of the State GST to pass a fresh adjudication order within two weeks of receiving the order. The fresh order should allow the claim of ITC in accordance with the law. Regarding the single import for which the bill of entry was not available with the customs authority, the Court directed the petitioner to approach the customs authority with supporting documents. The customs authority was instructed to consider this application in accordance with law. The Court noted a typographical error in the writ petition number recorded in a prior instruction.
Facts
The petitioner, M/s. Recom Equipments & Controls & Anr., sought to claim Input Tax Credit (ITC) on certain imports. The State GST authority denied this claim, stating that ITC could not be allowed unless the customs authority certified that the goods were indeed imported and IGST had been paid. The petitioner provided documentation indicating that out of nine imports, eight were certified by customs as imported with IGST paid. However, the customs authority could not certify the remaining one bill of entry. The State GST authority had passed an adjudication order dated 16th August 2023 denying the ITC claim.
Key Issues
1. Whether the denial of Input Tax Credit (ITC) by the State GST authority is justified when the customs authority has certified most, but not all, import transactions as having paid IGST, and the petitioner has provided supporting documents for the remaining transaction? The petitioner argued that the State GST authority's denial was arbitrary, especially since most imports were certified by customs. They relied on the principle that ITC should not be denied on technical grounds when the underlying tax has been paid. The revenue (State GST authority) contended that certification from the customs authority for all import transactions was a mandatory prerequisite for allowing ITC, as per their understanding of the law and departmental practice. They emphasized the need for complete documentation and certification from the relevant authority.
Sections Cited
Not specified in the judgment
AI-generated summary — verify with the full judgment below
2023 PB Sl. No.
WPA 26026 of 2023 M/s. Recom Equipments & Controls & Anr. Vs The State of West Bengal & Ors. Mr. Arijit Chakrabarti, Mr. Nilotpal Chowdhury, Mr. Prabir Bera. … For the Petitioner. Ms. Udita Saraf. …….for the respondent no.
Mr. Om Narayan Rai, Mr. Ashok Halder. …….for the UOI. Mr. A. Ray, Mr. T. M. Siddiqui, Mr. T. Chakraborty, Mr. S. Sanyal. …….for the State. Pursuant to the earlier order of this Court dated 18th December, 2023, Mr. Maiti, learned advocate representing the customs authority files written instruction dated 20th December, 2023, issued by the office of the Commissioner of Customs (Air Cargo Export), which may be kept with the record. On perusal of the aforesaid instruction, it appears that the claim of ITC by the petitioner which was denied by the State GST authority on the ground the same were not imported and unless the custom authority certifies that the goods in question on the import of which petitioner is claiming ITC is certified by the custom
2 authority, State GST authority is not in a position to allow the aforesaid claim, in fact, it has been certified by the custo
The judgment continues below.
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