Calcutta High Court Remands GST ITC Claim Case for Fresh Consideration

High Court Sets Aside Appellate Authority's Order for Lack of Proper Reasoning and Documentation Clarity

In a significant decision, the Calcutta High Court, under Justice Om Narayan Rai, has set aside the order of the Appellate Authority regarding the Input Tax Credit (ITC) claim by Laxmi Ghosh under the West Bengal Goods and Services Tax Act, 2017, and the Central Goods and Services Tax Act, 2017. The court remanded the case for fresh consideration, citing the lack of reasoning and clarity on necessary documents in the Appellate Authority's decision.

The case arose when Laxmi Ghosh inadvertently failed to claim ITC in her monthly returns (GSTR-3B) for the months of May, June, and July 2018. She rectified this omission in her annual return (GSTR-9) for the financial year 2018-19. Despite this correction, the Appellate Authority dismissed her appeal, stating her plea was "devoid of logic" and lacked necessary documentation without specifying what documents were absent.

The High Court found that the Appellate Authority failed to explain why Ghosh's submissions were deemed illogical and did not identify the absent necessary documents. The court also noted that Ghosh had submitted a written representation, contradicting the Appellate Authority's claim of its absence.

Justice Rai emphasized the importance of considering the GSTR-9 annual return in determining ITC claims, underscoring that ignoring it would render the purpose of filing annual returns redundant. The High Court's decision mandates the Appellate Authority to re-evaluate the case with proper reasoning and consideration of relevant documents.

The petitioner, Laxmi Ghosh, is allowed to submit further representation or clarification to the Appellate Authority within two weeks. The court has not commented on the merits of Ghosh's entitlement, leaving the Appellate Authority to make a reasoned decision in accordance with the law.

The matter highlights the crucial role of detailed documentation and clear reasoning in adjudicating tax-related appeals, reinforcing the necessity for transparency and thoroughness in such proceedings.

Bottom Line:

GST Law - Claim of Input Tax Credit (ITC) in annual return - Appellate Authority's order rejecting appeal without proper reasoning and absence of clarity on necessary documents - Matter remanded for fresh consideration.

Statutory provision(s): West Bengal Goods and Services Tax Act, 2017 Sections 73, 107; Central Goods and Services Tax Act, 2017 Sections 73, 107

Laxmi Ghosh v. State of West Bengal, (Calcutta) : Law Finder Doc Id # 2815042