HC remanded matter as no credit was given to assessee for unavailed ITC before raising demand of CESS Case {Bidyut Autotech (P.) Ltd. vs. Assistant Commissioner of State Tax [2025] 181 taxmann.com 354 (Calcutta HC)}
Facts:
The assessee was engaged in manufacturing activities and was liable to pay CESS under the applicable GST provisions. The department raised a demand of CESS without first adjusting or granting credit for the unavailed Input Tax Credit that was admittedly available in the assessee’s electronic credit ledger for the relevant period.
Issue:
Whether the tax authorities were justified in raising a demand of CESS without considering and adjusting the unavailed ITC available to the assessee.
Held:
The Calcutta High Court held that raising a demand without giving due credit of eligible and unavailed ITC is unsustainable in law. Since the authorities failed to consider the available ITC before confirming the demand, the matter suffered from procedural infirmity. Accordingly, the High Court set aside the impugned demand and remanded the matter to the department for fresh adjudication after granting due credit of admissible ITC and in accordance with law.
