Summary
- The GSTAT Kolkata has ruled in favor of M/s North Bengal Tea & Allied, allowing a refund of Rs. 7,77,858 under Section 54(3)(ii) of the CGST Act for accumulated input tax credit due to an inverted duty structure.
- The Revenue's appeal argued that both input and output (tea) attracted a GST rate of 5%, thus denying the refund; however, the Tribunal found packing materials as eligible inputs under Section 2(59).
- The Tribunal emphasized that refund eligibility is not limited to singular inputs and dismissed the Revenue's reliance on Circular No. 135/5/2020-GST as factually incorrect.
- This decision clarifies the interpretation of "inputs
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