M/S. Malabar Fuel Corporation vs. The Assistant Commissioner
Held
The High Court held that the stipulation in Circular No. 135/05/2020-GST, which denies refund of accumulated ITC on the ground that input and output supplies are the same despite differing tax rates, runs contrary to Section 54(3)(ii) of the CGST Act. It followed precedents from other High Courts that had struck down similar denials.
Facts
M/s. Malabar Fuel Corporation, engaged in bottling LPG, paid 18% GST on bulk LPG (input) but charged 5% GST on domestic bottled LPG (output), leading to accumulated Input Tax Credit (ITC). Their refund claims for this accumulated ITC were rejected by authorities, citing Circular No. 135/05/2020-GST.
Key Issues
Whether refund of accumulated ITC can be denied under Section 54(3)(ii) of the CGST Act when the input and output goods are essentially the same but subject to different GST rates, based on Circular No. 135/05/2020-GST.
Sections Cited
Section 54(3)(ii), Circular No. 135/05/2020-GST
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 11TH DAY OF JANUARY 2024 / 21ST POUSHA, 1945 WP(C) NO. 26112 OF 2023 PETITIONER/S: M/S. MALABAR FUEL CORPORATION 358, ELEMBERAPARA, ARAMVAYAL ROAD, KOOVERY, KANNUR, PIN – 670142, REPRESENTED BY ITS MANAGING PARTNER, SALEEM KUNJIKKANDY, BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA PARVATHY MENON RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER CENTRAL TAX AND CENTRAL EXCISE, KANNUR DIVISION, CENTRAL REVENUE BUILDING, KUZHIKUNNU, KANNUR, PIN - 670001 2 THE JOINT COMMISSIONER (APPEALS) OFFICE OF COMMISSIONER (APPEALS), CENTRAL TAX, CENTRAL EXCISE AND CUSTOMS, CGST DEPARTMENT, C.R. BUILDING, IS PRESS ROAD, KOCHI, PIN - 682018 3 UNION OF INDIA REPRESENTED BY SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE), NORTH BLOCK, NEW DELHI, PIN - 110001 4 STATE OF KERALA REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001
WP(C) Nos.26112, 20511 & 36699/2023 2 5 CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS GST POLICY WING, NORTH BLOCK, NEW DELHI, PIN - 110001, REPRESENTED BY PRINCIPAL COMMISSIONE
The judgment continues below.
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