TaxTMI 
TaxTMI 
2026 (9) TMI 1416
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.... Private Limited under sub-section (1) of Section 107 of the CGST Act against the Order-in-Original bearing Ref No. ZD190225012480S dated 07.02.2025 passed by the Assistant Commissioner of CGST and Central Excise, BBD Bag II Division, Kolkata North Commissionerate. 2. The respondent i.e., M/s Amrit Crafts Private Limited (19AAECA9154A2ZT) situated at 6th Floor, Room No. 605, I British Indian Street, Kolkata 700 069 is engaged in the business of scouring, dyeing and washing of grey fabric on job-work basis, strictly in accordance with the specifications provided by its principal manufacturers / buyers from time to time. Ordinarily, the grey fabric is supplied by the principal manufacturer; however, in certain cases, the respondent also procures the grey fabric on behalf of the principal manufacturer for carrying out the requisite processing. The respondent also submits that in the course of carrying out such processing activity, the respondent uses various chemicals, dyes and other consumables, on which GST is leviable at higher rates, namely 18% / 12% (at the relevant time), whereas the outward supply of processed fabrics attracts GST at 5%. As a consequence of the aforesaid inv....
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....ount from total supply value as declared in GSTR 3B for the relevant period. The Revenue have made grounds that the above observation is not based on any provision of law in respect of determining the amount of admissible refund. Further, if the Appellate Authority was indecisive in reaching any conclusion regarding applicability of Credit Note, he could have verified the matter from other evidences. 5.2 The Revenue also contended that the first Appellate Authority has allowed the appeal and directed the OAA to review the calculation which amounts to remanding the appeal, as per the provisions of law the first Appellate Authority has no power to remand back the case to the OAA in terms of Section 107(11) of the CGST Act, 2017. 6. We have heard the arguments of the petitioner on the point of admission. The petitioner is represented by Shri Shilananda Tigga, Superintendent, CGST who is authorized representative of the Revenue. The appeal was admitted and accordingly notice was issued to the respondent. The respondent filed his authorization and appeared through Shri Daya Shankar Agarwala, CA and Shri Vikash Kumar Banka, CA, the Authorized Representatives. The authorized represe....
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.... by re-computing the refund amount. Such re-computation does not amount to remand the case by the first Appellate Authority. In refund matters under section 54(3)(ii) read with rule 89(5), the exact refund amount depends upon proper identification of inverted turnover, admissible Net ITC, exclusions, and application of the statutory formula. Therefore, after deciding the legal issue and indicating the relevant parameters, directing the OAA to carry out arithmetical working is only a mechanical implementation of the appellate decision. The Revenue's allegation that the first Appellate Authority ought to have quantified the exact amount itself is therefore misconceived. The direction for calculation in terms of the findings of the first Appellate Authority was neither indeterminate nor assumptive, but a permissible consequential direction for giving effect to the OIA. The Revenue has failed to demonstrate that the first Appellate Authority remanded or referred back the matter for fresh decision. The objection raised on relying on Section 107(11) of the CGST Act, 2017 is, therefore, misconceived and untenable. Section 107(11) of the CGST Act, 2017 prohibits a true remand of the case t....
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.... inputs and output supplies are falling under same HSN. We have examined the said circular. The provisions of the said circular are applicable for the cases where there is reduction in GST rate. The same is mentioned in the heading of para 3 of the said circular. For brevity we reproduce the para 3 of the circular below: "3. Refund of accumulated input tax credit (ITC) on account of reduction in GST Rate 3.1 It has been brought to the notice of the Board that some of the applicants are seeking refund of unutilized ITC on account of inverted duty structure where the inversion is due to change in the GST rate on the same goods. This can be explained through an illustration. An applicant trading in goods has purchased, say goods "X" attracting 18% GST. However, subsequently, the rate of GST on "X" has been reduced to, say 12%. It is being claimed that accumulation of ITC in such a case is also covered as accumulation on account of inverted duty structure and such applicants have sought refund of accumulated ITC under clause (ii) of sub-section (3) of section 54 of the CGST Act. 3.2 It may be noted that refund of accumulated ITC in terms clause (ii) of sub-se....
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....etitioner is entitled to the relief. In this case, though the rate of tax on cotton yarn is the same, with reference to the chemicals used, the packing and other materials used, there is a higher rate of tax on the output goods, and hence the petitioner is entitled to succeed. The necessary formula for the calculation is also prescribed in Rule 89 (5) of the Rules. The circular dated 18/11/2019 has already been declared unconstitutional, and hence no further relief need be granted regarding the same. 18. As a result, (i) W.P.(MD) No. 16757 of 2025 stands allowed. The impugned Order No. 7/XO0601/2025-Refund dated 17.03.2025 stands quashed. The respondent is directed to process and sanction the refund of Rs. 10,88,231/- along with interest as per the provisions of the CGST Act, 2017, in accordance with the formula prescribed under Rule 89(5), after affording an opportunity of personal hearing, within three months from the date of receipt of the web copy of the Order. (ii) W.P. (MD) No. 16758 of 2025 stands allowed. The impugned order No. 12/XO0601/2025-Refund dated 15.05.2025 stands quashed. The respondent is directed to process and sanction the refund of R....