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IN THE HIGH COURT OF SIKKIM AT GANGTOK
MEENAKSHI MADAN RAI
SICPA India Private Limited – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. alternative remedy does not bar writ jurisdiction. (Para 6 , 7) |
| 2. inherent right to refund of unutilized itc upon closure. (Para 8 , 9) |
| 3. setting aside impugned order allowing petitioner's claim. (Para 10 , 11) |
JUDGMENT
MEENAKSHI MADAN RAI, J.
1. The Assistant Commissioner, Central Goods and Services Tax (CGST) and Central Excise, Gangtok Division, Gangtok, Sikkim, vide Order dated 08-02-2022, rejected the refund application filed by the Petitioners, claiming unutilized Input Tax Credit (ITC), lying in Electronic Credit Ledger amounting to Rs. 4,37,61,402/- (Rupees four crores, thirty seven lakhs, sixty one thousand, four hundred and two) only, upon discontinuance of business:
(i) The Petitioners were before the Additional Commissioner of CGST and Central Excise, Siliguri Appeals Commissionerate, assailing the same.
2. The Appellate Authority, vide Order dated 22-03-2023, upheld the Order dated 08-02-2022, of the Assistant Commissioner (supra). It was reasoned that on a combined reading of Sections 54(3) and 29 of the Central Goods and Services Tax Act, 2017 (hereinafter, the “CGST Act”), it is evident that the current regulations do not provide for refund of unutiliz
The balance of unutilized input tax credit remaining in an electronic ledger upon the permanent closure of a business is refundable, as the law does not expressly prohibit such claims, and the state ....
Refund of unutilized input tax credit is a strictly statutory right confined to specific situations prescribed by law. It cannot be granted upon business closure unless explicitly enumerated by the l....
The court established that transitional CENVAT credit can be carried forward into the GST regime and utilized for claiming refunds under the CGST Act, rejecting hyper-technical interpretations by aut....
Refund of unutilized CENVAT credit due to closure is not permitted under Section 11B(2)(c) post 01.04.2012 amendments.
Transitional credit recognized in GST Form TRAN-1 must be considered for refund claims under Section 54 of the CGST Act, regardless of its verification timing.
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....
Taxpayers are eligible for refunds of accumulated input tax credit even when input and output supplies are identical, as clarified through legislative amendments.
The eligibility of a merged entity for ITC refund is recognized under GST, allowing inclusion of export proceeds from previous tax regimes.
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