Can refund be claimed on accumulate
Case Title | Synergy Measurement Technologies Pvt Ltd vs Union of India |
Court | Telangana High Court |
Honorable Judges | Justice Ujjal Bhuyan & Justice Surepalli Nanda |
Citation | 2022 (7) GSTPanacea 215 HC Telangana W.P.No 24508 of 2022 |
Judgement Date | 20-July-2022 |
Council for Petitioner | M.V.J.K.Kumar |
Council for Respondent | L.Venkateswar |
The Telangana High Court bench of Justice Ujjal Bhuyan & Justice Surepalli Nanda has held that as per para 3.3 of Circular No.135/05/2020-GST, dated 31.03.2020 refund on accumulate credit where inputs and output goods are same but the output supplies are made under a concessional notification.
Can refund be claimed on accumulate
FACTS OF THE CASE
Petitioner seeks a declaration that para 3.2 of Circular No.135/05/2020-GST, dated 31.03.2020, of the Central Board of Indirect Taxes and Customs (briefly, ‘the Board’ hereinafter) is ultra vires Section 54(3)(ii) of the Central Goods and Services Tax Act, 2017 (briefly, ‘the CGST Act’ hereinafter. Petitioner further seeks a direction to respondent No.4 for refund of Rs.29,89,016.00 with interest in terms of Section 54 of the CGST Act. Respondents has clarified that in cases where the supplier is making supply of goods under a concessional notification and the rate of tax of output supply is less than the rate of tax on input supply (of the same goods) at the same point of time due to supply of goods by the supplier under such concessional notification, refund of accumulated input tax credit on account of inverted structure.
Can refund be claimed on accumulate
COURT HELD
Considering the facts as recorded, held that as per para 3.3 of Circular No.135/05/2020-GST, dated 31.03.2020, of the Central Board of Indirect Taxes and Customs Cases where as the rate of tax of output supply is less than the rate of tax on inputs at the same point of time due to supply of goods by the supplier under such concessional notification, the credit accumulated on account of the same is admissible for refund
Can refund be claimed on accumulate
ANALYSIS OF THE JUDGEMENT
Cases where though inputs and output goods are same but the output supplies are made under a concessional notification due to which the rate of tax on output supplies is less than the rate of tax on input.
The credit accumulated on account of the same is admissible for refund under the provisions of clause (ii) of the first proviso to sub-section (3) of section 54 of the CGST Act, other than the cases where output supply is either Nil rated or fully exempted, and also provided that supply of such goods or services are not notified by the Government for their exclusion from refund of accumulated ITC under the said clause
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