Assessee cannot be asked to approach the appellate authority if it was not made a party to the original application

Last updated: 13 January 2023

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The Calcutta High Court has ruled that an assessee cannot be denied Input Tax Credit (ITC) if they were not made a party to the original Advance Ruling Authority (AAR) application. The court found that the AAR had made a ruling without hearing the assessee, even though their invoices were the subject of the dispute. Directing the assessee to appeal was deemed ineffective as crucial facts were not part of the original record. The matter was therefore remanded for fresh consideration with proper notice to all parties.

Court :
Calcutta High Court

Brief :
The Hon'ble Calcutta High Court in the matter of M/s. Gayatri Projects Limited & anr. v. The Assistant Commissioner of State Tax, Durgapur Charge & Ors. [M.A.T No.2027 of 2022 with I.A. No. CAN 1 of 2022 dated January 5, 2023] set aside the ruling passed by the AAR denying ITC to the buyer and remanded the matter back for fresh consideration. Held that,where sufficient factual details were not placed before the AAR, the assessee should not be left remediless, without hearing them. Further held that, directing the assessee to prefer an appeal will not be effective as the facts, which it seeks to bring on recordwere not a part of the records before the original authority.

Citation :
M.A.T No.2027 of 2022 with I.A. No. CAN 1 of 2022 dated January 5, 2023

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1999

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3499

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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