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BHARGAV D. KARIA, D. N. RAY
ASCENT MEDITECH LTD. – Appellant
Versus
UNION OF INDIA – Respondent
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned advocate Mr. Uchit Sheth for the petitioner and learned advocate Mr. Hirak Shah and C.B. Gupta for the respondents in the respective petitions.
2. Rule returnable forthwith. Learned advocates for the respective respondents waive service of notice of rule.
3. Having regard to the controversy in narrow compass, with the consent of the learned advocates for the parties, the matter is taken up for hearing.
4. The petitioner has prayed for quashing and setting aside the order dated 24.08.2023 rejecting the refund application of the petitioner on the basis of the circular dated 10.11.2022. The petitioner has therefore, also challenged the said circular.
5. The petitioner is engaged in the business of manufacturing orthopedic soft goods for upper extremity, lower extremity and spine as well as mobility assistive devices for home and hotel use.
6. The applicable rate of tax on output supplies of the products manufactured by the petitioner is 5% as its majority of goods are classifiable under HSN90211000 whereas, the applicable rate of tax on main inputs used by the petitioner to manufacture its product ranges from 12% to 18%.
7. The petitioner also
The amendment to Rule 89(5) of the GST Rules is curative and clarificatory, applicable retrospectively to refund applications filed within two years under Section 54(1) of the GST Act.
Amendment to Rule 89(5) CGST Rules via Notification 14/2022 is clarificatory/curative, applying retrospectively to pre-notification refund claims of unutilized ITC due to inverted tax structure if fi....
The main legal point established is that the statutory scheme of refund under Section 54(3) of the CGST Act, 2017 applies to cases of accumulation of unutilised input tax credit due to an inverted du....
The restrictions on refund of accumulated input tax credit under Notification No. 9/2022 apply prospectively only, allowing claims for periods prior to the notification while filed within the statuto....
Petitioners entitled to refund of unutilized input tax credit as exporters, while Circular No. 172/04/2022 restricting such claims based on deemed exports deemed inapplicable.
Taxpayers are eligible for refunds of accumulated input tax credit even when input and output supplies are identical, as clarified through legislative amendments.
Input tax credits accrued before the effective date of a notification can be claimed despite subsequent restrictions, as clarified by the court.
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