IGST Credit Used for CGST & SGST Payments Leads Tax Flow to West Bengal: Calcutta HC sets aside AO Passed under WBGST Act

The Calcutta High Court nullified a GST Assessment Order under the West Bengal GST Act, noting the utilisation of IGST credit for CGST and SGST payments, which then flowed to West Bengal. The Court ordered a refund of the 10% pre-deposit paid by M/s Cosyn Limited, the appellant. 

Initially dismissed on appealability grounds, the case was re-evaluated, with the impugned order stayed contingent upon depositing 10% of the disputed tax amount. Following extensive hearings, the Court issued a detailed order, emphasizing the lack of response from West Bengal regarding the input tax credit (ITC) utilization. 

Upon confirmation of the ITC transfer to West Bengal, the Court annulled the assessment order, directing the department to refund the pre-deposit within eight weeks.