HC Sets Aside Assessment Order Against Assessee Who Used IGST Credit for CGST & SGST, as IGST Credit for SGST Flowed to West Bengal

Case Details: Cosyn Ltd. v. Assistant Commissioner of State Tax - [2024] 162 taxmann.com 411 (Calcutta)

Judiciary and Counsel Details

• T.S. Sivagnanam & Hiranmay Bhattacharyya, JJ.
• Karan Talwar & Ms Anupa Banerjee for the Appellant.
• Anirban Ray, Ld. G.P., Md. T. M. Siddiqui, Tanoy Chakraborty & Saptak Sanyal for the Respondent.

Facts of the Case

The appellant was engaged in providing services of software and IT services. It availed credit of IGST and subsequently used the same for payment of CGST and SGST. It filed writ petition against the assessment order issued against such utilization and contended that the input tax credit, which is utilized for payment of SGST, would be transferred subsequently and appropriated to the respective State. Therefore, on utilization of input tax credit of IGST for payment of SGST, tax would flow to the State of West Bengal.

High Court Held

The High Court noted that the amount had been transferred to Government of West Bengal. Therefore, the assessment order, which was subject matter of challenge in writ petition, could no longer survive. Thus, it was held that the assessment order was to be set aside.