Hooghly Motors Pvt. Ltd. v. State of West Bengal & Others

Background of the Case

This case concerns the interpretation of the term “input” under the GST law and its relevance in determining eligibility for refund of unutilized Input Tax Credit (ITC) arising due to an inverted duty structure. The petitioner, Hooghly Motors Pvt. Ltd., is engaged in the manufacture and supply of e-rickshaws, popularly known as TOTOs, and is duly registered under the CGST and WBGST Acts, 2017.

During the course of its manufacturing activities, the petitioner procured stereo systems and loudspeakers which were installed in the e-rickshaws manufactured and supplied to customers. The petitioner treated these stereo systems as goods used in the course or furtherance of its business and accordingly availed Input Tax Credit on the tax paid thereon.