Aurobindo Pharma Limited vs. State Of Telangana
Held
The High Court, noting that an identical matter involving the same petitioner had been previously decided, set aside the impugned orders. Relying on Gujarat High Court judgments, it held that the refund of unutilized Compensation Cess for zero-rated/exempted supplies is permissible. The matter was remanded to the original authority for a fresh decision after providing an opportunity of hearing to the petitioner.
Facts
Aurobindo Pharma Limited sought a refund of Compensation Cess paid on inputs utilized for manufacturing goods that were subsequently exported (zero-rated supplies) or supplied to Special Economic Zones (exempted from tax). The refund claims were rejected by the appellate authority, leading the petitioner to file multiple writ petitions.
Key Issues
The key legal issue was the petitioner's entitlement to a refund of unutilized Compensation Cess paid on inputs, where the final manufactured goods were either exported (zero-rated) or supplied to SEZ (exempted from tax).
Sections Cited
Central Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017, Goods and Services Tax (Compensation to States) Act, 2017, Rules prescribed thereunder
AI-generated summary — verify with the full judgment below
t [ 348s ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY NINTH DAY OF APRIL TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUST]CE SUDDALA CHALAPATHI RAO WRIT PETITION NOS: 13688. 13689.'13690 .13707.137 12. 13717.',13726 13727 13728. 13730.13733.13734. 13735. 13736 . 13738. 13739.13740. 13742 13743 13745,1 3747. 13748.'.|.3753. 13755. 13782 AND 13786 0F 2026 W.P.NO: 13688 OF 2026 Between: Aurobindo Pharma Limited, Plot No.1, Survey No.83/1 , Galaxy Tower, Floor Nos. 22-24, Hyderabad Knowledge City Raidu rg Panmaktha, Serilingampally Mandal, Ranga Reddy District, Hyderabad - 500032, Telangana, lndia Rep by its Authorised Signatory, Mr. T. Deepak ...PETITIONER AND 1. State of Telangana, Revenue (Commercial Tax) Department Rep by its Secretary.
Deputy Commissioner (ST), STU-1, Punjagutta Division, Hyderabad'
Appellate Joint commissioner of state Tax, Punjagutta Division, 5th Floor, C.T. Complex, NamPallY, HYderabad ...RESPONDENTS Petition under Article 226 ol the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the
The judgment continues below.
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