Aurobindo Pharma Limited vs. State Of Telangana

Held

The High Court, relying on its own previous Division Bench judgment concerning the same petitioner and identical issues, set aside the impugned orders. It remanded the matters to the original authority to take a fresh decision in accordance with law, after providing an opportunity of hearing, citing precedents on refund of unutilized cess for zero-rated supplies.

Facts

Aurobindo Pharma Limited filed multiple writ petitions challenging the rejection of their claims for refund of Goods and Services Tax (Compensation to States) Cess for various tax periods. The appellate authority had passed orders rejecting these refund claims, which the petitioner contended were illegal and arbitrary.

Key Issues

The primary legal issue was the entitlement of the petitioner to a refund of unutilized compensation cess paid on inputs, where the final manufactured goods were exported as zero-rated supplies.