Bindu Krishna Kumar vs. Central Tax Officer-1
Held
The High Court observed that the matter is now covered by Circular No. 173/05/2022-GST, which clarifies that refund of accumulated ITC is admissible in cases where the output supply rate is less than the input rate due to concessional notification. With the consent of both parties, the Court set aside the rejection orders and remanded the matter for reconsideration in light of the circular and Section 54(3) of the CGST Act.
Facts
The petitioner's claim for refund of accumulated input tax credit (ITC) on account of supplying goods at a concessional rate was rejected by the respondent authorities through orders Exts.P12 to P14. The petitioner challenged these rejection orders before the High Court.
Key Issues
Whether a taxpayer is entitled to a refund of accumulated input tax credit when supplying goods at a concessional rate, and how subsequent clarifying circulars impact such refund claims.
Sections Cited
Section 54(3)
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 27TH DAY OF JULY 2023 / 5TH SRAVANA, 1945 WP(C) NO. 30645 OF 2021 PETITIONER/S: BINDU KRISHNA KUMAR, AGED 48 YEARS PROPRIETRESS, CALGON SCIENTIFIC CO., 49/1174, 'VINAYAKA', PONEKKARA ROAD, AIMS P.O., EDAPPALLY, ERNAKULAM DISTRICT- 682041. BY ADVS. R.MURALEEDHARAN K.P.JOSE PIOUS RESPONDENT/S: 1 CENTRAL TAX OFFICER-1, CENTRAL TAX AND CENTRAL EXCISE, ERNAKULAM DIVISION, CENTRAL EXCISE BHAVAN, KATHRIKADAVU, KALOOR, KOCHI-682017. 2 THE ASSISTANT COMMISSIONER, CENTRAL TAX AND CENTRAL EXCISE, ERNAKULAM DIVISION, CENTRAL EXCISE BHAVAN, KATHRIKADAVU, KALOOR, KOCHI-682017. 3 PRINCIPAL COMMISSIONER, CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, GST POLICY WING, GOVERNMENT OF INDIA, MINISTRY OF FINANCE, NEW DELHI- 110001. 4 UNION OF INDIA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NEW DELHI-110001. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.07.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO.30645 OF 2021 2 JUDGMENT
Petitioner has approached this Court, being aggrieved by
The judgment continues below.
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