Assessee Can Seek Refund Of Unutilised ITC In Personal Bank Account If Business Is Shut Down: Calcutta High Court
Calcutta High Court recently directed the proper officer under the GST Act to consider ordering refund of the unutilised ITC of an Assessee to his personal bank account, as his business was closed and its GST registration stood cancelled.The Petitioner was aggrieved by a direction of the proper officer, though allowing the refund sanction to the tune of Rs. 68,66,238/- but, directing the...
Calcutta High Court recently directed the proper officer under the GST Act to consider ordering refund of the unutilised ITC of an Assessee to his personal bank account, as his business was closed and its GST registration stood cancelled.
The Petitioner was aggrieved by a direction of the proper officer, though allowing the refund sanction to the tune of Rs. 68,66,238/- but, directing the amount to be paid to the bank account of the business— Edelweiss Rural & Corporate Services Limited.
The Petitioner submitted that he has already closed down the business, its registration was cancelled and having regard thereto, he had claimed that the refund be paid to his personal bank account.
Petitioner submitted that in its oral order the proper officer had directed the amount to be paid to Petitioner's personal bank account but, in the detailed refund sanction order it provided that the refund will be paid to the registered tax payer's credit ledger.
The petitioner argued there is no business for him to take benefit of the refund credited to the credit ledger of Edelweiss.
Finding the proper officer's to be “self-contradictory”, Justice Raja Basu Chowdhury directed him to reconsider it.
“The aforesaid order is passed on the basis that the petitioners have closed down its business operation and its registration under the said Act has already been cancelled and that there is no tax due and payable by the petitioners,” the bench added and disposed of the matter.
Appearance: Mr. Ankit Kanodia, Ms. Megha Agarwal, Ms. Tulika Roy, Mr. Piyush Khaitan … for the petitioners. Mr. Anirban Ray, Md. T. M. Siddiqui, Mr. Tanoy Chakraborty, Mr. Saptak Sanyal …. For the State
Case title: Edelweiss Rural & Corporate Services Limited & Anr. v. The Deputy Commissioner of Revenue, Taltala Charge, WBGST & Ors.
Case no.: WPA 3033 OF 2025