Transmission charges (open access charges) reimbursed as part of the agreed tariff for the export of electricity are to be included in the turnover of zero-rated supplies for calculating the refund of input tax credit.

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 to issue a Writ, Order or direction particularly one in the nature WRIT OF MANDAMUS Setting aside the impugned order i.e., ORDER-IN-APPEAL No GUN-GST-OOO-APP-017-2024-25 dated 30.05.2024 issued by the Respondent No. 2 a) Directing the Respondents to grant the differential refund Rs. 7,18,96,234/- in respect of refund application filed for the month of February 2023 in full with interest from the date of application i.e., 19.04.2023 at the applicable rate and Pass such

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 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 such

IA NO: 2 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 to grant leave to the respondent to file the counter affidavit and pass

IA NO: 1 OF 2025

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 to grant leave for filing Rejoinder affidavit in the writ petition No. 21930/2024

The Court made the following Common Order:

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

The petitioner, which is engaged in the business of power/electricity generation and sale of such electricity, had been exporting electricity to Bangladesh. This export was in two ways. Firstly, the petitioner was exporting electricity to Bangladesh, by way of a direct agreement between the petitioner and the Bangladesh Power Development Board. Secondly, it was being supplied through M/s. Power Trading Corporation, which is entered into an agreement with the Bangladesh Power Development Board.

The petitioner, after having exported electricity for some time, had sought refund of the input tax credit, which is accumulated in its account, by relying upon Section 16 of the I.G.S.T. Act, 2017 read with Section 54 of the C.G.S.T. Act, 2017 .

The procedure for appraising the refund applications made under Section 54 of the C.G.S.T. Act, is set out under Rule 89 of the C.G.S.T. Rules . Rule 89 provides for a formula to be applied for refund of the Input Tax Credit available in the ledger of the registered person. The said formula reads as follows:

Refund Amount = (Turnover of Zero rated supply of goods & services X Net ITC) / Adjusted Total Turnover

The petitioner, while seeking refund, had contended that, the Zero Rated Supplies made by him, constituted an aggregate of the transmission charges, which had been paid to the relevant transmission company as well as the cost of supply calculated, on the basis of the number of units supplied multiplied by the Tariff fixed in the agreement with the Bangladesh Power Development Board.

The details of the claim made by the petitioner, under each of these Writ Petitions, and the periods for which such refund is sought are set out in the table given below: