GST Appellate Tribunal, Kolkata
Pr. Commissioner CGST & CX v. North Bengal Tea & Allied
APPEAL NO.: APL/32/KLK/2026
The ruling in brief
Where assessee supplied packaged tea taxed at 5 percent using packing materials taxed at 12 percent or 18 percent, resulting in ITC accumulation, refund of ITC under inverted duty structure was allowable since statutory provisions and CBIC circular recognised packing materials as eligible inputs, and refund could not be denied merely because principal input and output attracted identical tax rate.
Where respondent supplied packaged tea using bulk tea both taxed at 5 percent and packing materials taxed at 12 or 18 percent, and claimed refund of accumulated ITC under inverted duty structure, Circular 135/5/2020 was inapplicable as there was no change in GST rate on same goods, and statutory refund entitlement could not be curtailed by such circular
Provisions considered
Section 54 of Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017 - Rule 89 of Central Goods and Services Tax Rules, 2017/West Bengal Goods and Services Tax Rules, 2017; Section 54, read with section 168, of Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017 - Rule 89 of Central Goods and Services Tax Rules, 2017/West Bengal Goods and Services Tax Rules, 2017
This summary is for general information and is not legal advice. Read the full decision and the applicable law before relying on it.