Aurobindo Pharma Limited vs. The State Of Telangana
Held
The High Court, following its own previous Division Bench judgment for the same petitioner and relying on Gujarat High Court precedents (Atul Limited and Patson Papers), held that refund of unutilized compensation cess against zero-rated supplies is permissible. It set aside the impugned orders and remanded the matter to the original authority for a fresh decision after providing an opportunity of hearing.
Facts
Aurobindo Pharma Limited sought a refund of Compensation Cess paid on inputs used for manufacturing goods that were either exported (zero-rated supplies) or supplied to SEZ (exempted from tax). The appellate authority rejected these refund claims, leading the petitioner to file multiple writ petitions.
Key Issues
Whether the petitioner is entitled to a refund of accumulated unutilized Compensation Cess paid on inputs used for manufacturing goods that are subsequently exported (zero-rated supplies) 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
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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Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.