Key Legal Ruling: Shipping Bill Details and GST Refund Claims

Non-incorporating the details of the shipping bills in
the GSTR-1 would not result in denial of Refund claim if taxpayer in possession of Shipping Bills
Hon’ble Calcutta High Court in case of Mr. Sunil Kumar Poddar Versus The Additional Commissioner (Appeal), Siliguri Appeal Comissionerate & Ors in W.P.A 2900 of 2023 decided on January 30,
2024.

Facts

The petitioner made zero rated supply of goods and seeks refund of the
unutilized accumulated Input Tax Credit. He filed Form GST RFD-01 but his
prayer stood rejected on the ground that the petitioner failed to upload the
shipping details. The appeal preferred before the Additional Commissioner of
CGST & CX, Siliguri Appeal commissionerate also stood rejected vide order
dated March 23, 2023.

Petitioner  Pleadings

The petitioner has in his grounds of appeal before the appellate authority
mentioned that due to wrong appreciation of the provision of law, the shipping details could not be uploaded at the time of seeking refund. Admittedly, the shipping bills were forwarded and annexed at the time of preferring the appeal.

Respondent Pleadings

It has been submitted that as law requires submission of the shipping details
for obtaining refund, the petitioner was legally bound to supply the details of the shipping bills. On account of non-incorporating the details of the shipping bills in the GSTR-1 in the GSTN portal, the prayer for refund of the petitioner has been rightly rejected. The respondents categorically deny that there was any technical glitch at the time of amendment of the requisite Form as alleged by the petitioner.

Hon’ble Court Observation and Order

It appears that on one hand the petitioner is not being permitted to amend the
GSTR-1 and on the other hand hardcopies of the shipping bills submitted by the
petitioner at the time of preferring appeal is not being considered. The authority
at the time of consideration of the appeal of the petitioner ought to have
appreciated that the petitioner will not gain anything by holding back the shipping
bills. The petitioner would lose a sum of nearly five crore of rupees on account of
not uploading the shipping bills in proper time.