Calcutta High Court Sets Aside Rejection of IGST refund Application in Light of Notification Declared Unconstitutional by Supreme Court

Calcutta High Court Sets Aside Rejection of IGST refund Application in Light of Notification Declared Unconstitutional by Supreme Court

The Calcutta High Court has set aside the orders that rejected ETC Agro Processing (India) Pvt. Ltd.’s (petitioner) application for refund of Integrated Goods and Services Tax (IGST) pertaining to the period from July 2017 to June 2018, while observing that the Notification No.10/2017-IGST dated 28th June, 2017, regarding ‘categories of services on which integrated tax will be payable under reverse charge mechanism under IGST Act,’ has been declared unconstitutional by the Supreme Court.

In the instant writ petition, the petitioner had sought a direction from the Court to the West Bengal Goods and Services Tax (WBGST) authority for the refund of the IGST amount already paid, pursuant to the Entry No.10 of Notification No.10/2017-IGST dated 28th June, 2017. The refund was denied to the petitioner on the grounds of alleged limitation.

The petitioner relied on a decision of the Gujarat High Court in ETC Agro Processing (India) Pvt. Ltd vs. Union of India, which pertained to the petitioner’s own case. The petitioner also stated that impugned notification has been declared unconstitutional by the Supreme Court.

The single judge Justice Md. Nizamuddin noted that the Additional Government Pleader, did not dispute the factual and legal position that the impugned notification had already been declared unconstitutional by the Supreme Court. Furthermore, the Court acknowledged that the judgment of the Gujarat High Court in the petitioner's own case had not been stayed or interfered with by any higher forum till date.

Consequently, the Court remanded the matter back to the authorities to reconsider and make a fresh decision regarding the grant of refund to the petitioner based on merit.