Aurobindo Pharma Limited vs. State Of Telangana

Held

The High Court, following its own previous identical judgment for the same petitioner, set aside the impugned orders. It remanded the matter to the original authority to reconsider the refund claims in light of Gujarat High Court judgments, which allowed such refunds for zero-rated supplies, and to pass a fresh decision within four months after hearing the petitioner.

Facts

Aurobindo Pharma Limited sought a refund of unutilized Compensation Cess paid on inputs used for manufacturing goods that were subsequently exported as zero-rated supplies. The tax authorities rejected these refund claims, prompting the petitioner to file multiple writ petitions.

Key Issues

The key legal issue was whether a refund of unutilized Compensation Cess, paid on inputs used for manufacturing zero-rated supplies (exports), is permissible when the final exported goods are exempt from tax.