M/s. SEIL Energy India Limited vs THE PRINCIPAL COMMISSIONER OF CENTRAL TAX

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Online)(AP) 16539

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI ***
W.P.Nos.21938, 31057, 31060, 31066, 31067,31068,31086, 31087, 31089, 31095, 31107, 31111, 31114, 31116, 31119 of 2024 &
14434, 14436, 14439, 28349, 28351, 28354, 28355, 28356, 28362, 28363, 28365 of 2025 W.P.No.21938 of 2024 Between:
M/s. SEIL Energy India Limited, (Formerly M/s. SEMCORP Energy India Limited), Pynampuram/Nelatur Village, Muthukur Mandal, Nellore, Andhra Pradesh-524344, Rep. by its General Manager-Finance, Mr. Amitkumar Patal.
1…Petitioner AND $1. The Principal Commissioner of Central Tax, Guntur, CGST Commissionarate, Central Revenue Building, K.V. Thota, Guntur-522 004. 2. The Additional Commissioner of Central Tax GST Appeals, D.No.3-30-
215, Ring Road, Guntur, Andhra Pradesh-522 006.
33. The Deputy Commissioner of Central Tax, Central G.S.T Division, Nellore G.S.T. Bhavan, D.No.24-7-205/2, Plot No.121, 12^th Road, Magunta Layout, Nellore-524003.
44. The Union of India, through Principal Secretary to the Government, Ministry of Finance, Department of Revenue, Udyog Bhavan, North Block, New Delhi-110 001.
… Respondents Date of Judgment pronounced on : 31-12-2025 THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE SUBHENDU SAMANTA
1. Whether Reporters of Local newspapers : Yes/No May be allowed to see the judgments?
2. Whether the copies of judgment may be marked : Yes/No to Law Reporters/Journals:
3. Whether the Lordship wishes to see the fair copy : Yes/No Of the Judgment?
*IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO AND THE HONOURABLE SRI JUSTICE SUBHENDU SAMANTA W.P.Nos.21938, 31057, 31060, 31066, 31067,31068,31086, 31087, 31089, 31095, 31107, 31111,31114, 31116, 31119 of 2024 &
14434, 14436, 14439, 28349, 28351, 28354, 28355, 28356, 28362, 28363, 28365 of 2025 % Dated: 31-12-2025 W.P.No.21938 of 2024 Between:
M/s. SEIL Energy India Limited, (Formerly M/s. SEMCORP Energy India Limited), Pynampuram/Nelatur Village, Muthukur Mandal, Nellore, Andhra Pradesh-524344, Rep. by its General Manager-Finance, Mr. Amitkumar Patal.
…Petitioner AND $1. The Principal Commissioner of Central Tax, Guntur, CGST Commissionarate, Central Revenue Building, K.V. Thota, Guntur-522 004.
2. The Additional Commissioner of Central Tax GST Appeals, D.No.3-30-15, Ring Road, Guntur, Andhra Pradesh-522 006.
3. The Deputy Commissioner of Central Tax, Central G.S.T Division, Nellore G.S.T. Bhavan, D.No.24-7-205/2, Plot No.121, 12^th Road, Magunta Layout, Nellore-524003.
4. The Union of India, through Principal Secretary to the Government, Ministry of Finance, Department of Revenue, Udyog Bhavan, North Block, New Delhi-
110 001.
… Respondents ! Counsel for petitioner : Sri Raghavan Ramabhadran, Rep. Sri Lakshmi Kumaran Sridharan ^Counsel for Respondents : Sri Y.N. Vivekananda GIST :
>HEAD NOTE:
? Cases referred:
1 AIR 1963 SC 1405
2(1969) 2 SCC 554
3 (2003) 5 SCC 705
4(2024) 2 SCC 613
5(2019) 20 SCC 1
6(2015) 4 SCC 136
7 AIR 1963 SC 1405
APHC010424302024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3559]
(Special Original Jurisdiction)
WEDNESDAY,THIRTY FIRST DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE SUBHENDU SAMANTA W.P.Nos.21938, 31057, 31060, 31066, 31067,31068,31086, 31087, 31089, 31095, 31107, 31111,31114, 31116, 31119 of 2024 &
14434, 14436, 14439, 28349, 28351, 28354, 28355, 28356, 28362, 28363, 28365 of 2025 W.P.No.21938 of 2024 Between:
1. M /S. SEIL ENERGY INDIA LIMITED, (FORMERLY M/S. SEMBCORP ENERGY INDIA LIMITED), PYANAMPURAM/NELATUR VILLAGE, MUTHUKUR MANDAL, NELLORE, ANDHRA PRADESH - 524344, REP. BY ITS GENERAL MANAGER - FINANCE, MR. AMITKUMAR PATEL ...PETITIONER AND
1. T HE PRINCIPAL COMMISSIONER OF CENTRAL TAX, GUNTUR CGST COMMISSIONERATE, CENTRAL REVENUE BUILDING, K.V.
THOTA, GUNTUR - 522 004
2. T HE ADDITIONAL COMMISSIONER OF CENTRAL TAX GST APPEALS, D. NO. 3-30-15, RING ROAD, GUNTUR, ANDHRA PRADESH - 522 006
3. T HE DEPUTY COMMISSIONER OF CENTRAL TAX, , CENTRAL G.S.T DIVISION, NELLORE G.S.T.BHAVAN, D. NO. 24-7-205/2, PLOT NO. 121, 12TH ROAD, MAGUNTA LAYOUT, NELLORE - 524
003
4. T HE UNION OF INDIA, THROUGH PRINCIPAL SECRETARY TO THE GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, UDYOG BHAVAN, NORTH BLOCK, NEW DELHI - 110
001 ...RESPONDENT(S):
Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased tomay be pleased to issue a Writ, Order or direction particularly one in the nature WRIT OF MANDAMUS a) Setting aside the impugned order issued by the Respondent No.2- b) Directing the Respondents to grant the differential refund Rs. 11,39,62,916/- in respect of refund application filed for the month of March, 2023 in full with interest from the date of application i.e., 16.06.2023 at the applicable rate, and c) Pass IA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to order provisional refund of 90% of the refund amount in terms of sub-section (6) of section 54 of the COST Act read with Rule 91 of the COST Rules and Circular No. 125/44/2019 dated 18.11.2019 and pass Counsel for the Petitioner:
1. LAKSHMI KUMARAN SRIDHARAN Counsel for the Respondent(S):
1. Y N VIVEKANANDA Date of Reserved : 05.11.2025 Date of Pronouncement : 31.12.2025 Date of Upload : 31.12.2025

The Court made the following common order:

(per Hon‘ble Sri Justice R. Raghunandan Rao)

As all these writ petitions have been filed by the same petitioner and raise identical questions of fact and law, they are being disposed of, by way of this common order.

2. Heard Sri Raghavan Ramabhadran, learned counsel representing Sri Lakshmi Kumaran Sridharan, learned counsel for the petitioner and Sri Y.N. Vivekananda, learned counsel appearing for the respondents.

3. The petitioner herein is involved in the generation and supply of electricity, to its purchasers. The petitioner owns and operates thermal power plants in the State of Andhra Pradesh.

4. The petitioner, in the course of its business purchases various goods, including coal, inputs and capital goods as well as obtains services. The petitioner also pays applicable GST on the purchases of these goods and services and is given input tax credit for these payments.

5. The petitioner, in the course of its business, had been supplying electricity to M/s. Bangladesh Power Development Board (hereinafter referred to as ‗Bangladesh Board‘). The said supply of electricity is done by the petitioner, directly to the Bangladesh Board, by way, of an agreement. Apart from this, the petitioner had supplied electricity to M/s. Power Trading Corporation India Limited (hereinafter referred to as ‗PTC‘), which supplied this electricity to the Bangladesh Board. In this case, PTC had entered into an agreement with the Bangladesh Board for supply of electricity, on 09.10.2018. PTC had also entered into an agreement with M/s Meenakshi Energy Limited, to supply the said power to PTC which would supply the power to the Bangladesh Board. The terms of the agreement between the Bangladesh Board and PTC specifically records that the power, that would be supplied by PTC, would be sourced from M/s Meenakshi Energy Limited.

6. As Meenakshi Energy Limited was unable to supply electricity, PTC had entered into a power purchase agreement with the petitioner, on 03.02.2022 and the petitioner was substituted for Meenakshi Energy Limited, in the power purchase agreement, executed between PTC and the Bangladesh Board. This substitution was done by way of an amendment agreement, dated 03.02.2022, between PTC and the Bangladesh Board.

7. The petitioner, had sought refund of the input tax credit, which accrued on account of the purchase of goods and services from various third parties, in the course of generation of electricity on the ground that the supply of electricity made by the petitioner to the Bangladesh Board directly as well as the supply made by the petitioner to the Bangladesh Board, through PTC, would be export supply, which are zero rated supplies, under the provisions of Section 16 of the IGST Act, 2017.

8. Section 54 of the CGST Act, 2017 provides for grant of refund of any tax including input tax, subject to satisfaction of the conditions set out in Section 54. The method of calculating the input tax that would have to be refunded, was also reduced to a formula in Rule 89(4) which reads as follows:

(4) In the case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of sub- section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), refund of input tax credit shall be granted as per the following formula - Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷ Adjusted Total Turnover Where, -

(A) "Refund amount" means the maximum refund that is admissible;

(B) ,,

(D) ,,

(E) …….

9. The term ‗Adjusted Total Turnover‘, defined in clause (E) of Rule 89(4), was further explained by way of Circular No.175/07/2012-GST, dated 06.07.2022, in the following manner:

4.4 Adjusted Total Turnover shall be calculated as per the clause (E) of sub-rule (4) of rule 89. However, as electricity has been wholly exempted from the levy of GST, therefore,

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