JUDGEMENT

(Per: HONOURABLE THE CHIEF JUSTICE) Date : 29-02-2024 The petitioner is before this Court claiming a refund of the tax paid by the petitioner on the ‘Inverted Duty Structure’ applicable to the business carried on by the petitioner; being bottling of LPG.

2. The petitioner purchases LPG in bulk after paying the applicable tax. The bulk LPG purchased is bottled in cylinders and sale is made to customers, collecting tax from commercial users; at the same rate of purchase of LPG and to the domestic users, at a lesser rate. As per Section 54(3)(ii) of the Central Goods and Services Tax Act, 2017 (for brevity ‘CGST Act’) read with Rule 89(5) of the Central Goods and Services Tax Rules, 2017 (for brevity ‘CGST Rules’) a refund of such differential tax is provided which is defined by the term ‘Inverted Duty Structure’.

3. Section 54 has the nominal heading of ‘Refund of tax’ under which the refund of higher tax paid on purchase, than that levied on subsequent sale; is provided by sub-section (1). It is also a mandate that such refund application shall be filed before the expiry of two years from the relevant date, in such form and manner as may be prescribed. The