M/S Ankitfasteners PVT LTD vs. The Unionof INDIA

1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 30TH DAY OF SEPTEMBER 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.8617 OF 2021 [T-RES] BETWEEN: M/S ANKITFASTENERS PVT LTD REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER SRI, SATHYANARAYANA K NO.297, ROAD NO.4, HARAGADDE VILLAGE, JIGNI INDUSTRIDAL ESTATE PHASE-1 BENGALURU-560105. …PETITIONER (BY SRI. RAJU H. Y. ADVOCATE) AND: 1. THE UNION OF INDIA REPRESENTED BY ITS UNDER SECRETARY MINISTRY OF FINANCE DEPARTMENT OF REVENUE NORTH BLOCK NEW DELHI-110001. 2. THE STATE OF KARNATAKA THROUGH ITS PRINCIPAL SEDCREATRY FINANCE DEPARTMENT VIDHANA SOUDHA DR B R AMBEDKAR ROAD BANGALORE-560001. 3. THE COMMISSISONER OF COMMERCIAL TAXES VANIJYA THERIGE KARYALAYA GANDHINAGAR BANGALORE - 560 009. 4. THE GOODS AND SERVICE TAX COUNCIL 5TH FLOOR, TOWER II JEEVAN BHARTI BUILDING JANPATH ROAD, CONNAUGHT PLACE NEW DELHI-110001. 2 5. THE DEPUTY COMMISSIONER OF CENTRAL TAX SOUTH DIVISION -8 BENGALURU GST SOUTH COMMISSIONERATE 7TH FLOOR, A WING, KENDRIYA SADAN, KORALMANGAL BANGALURU-560034. …RESPONDENTS (BY SRI. JEEVAN NEERALGI,ADVOCATE FOR R1; SRI. A. RAMESH GOWDA, HCGP FOR R2; SRI. AKASH B. SHETTY, ADVOCATE FOR R1, R3 TO R5)) THIS W.P. IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO HOLD THAT THE AMENDED RULE 89(5) OF CGST RULES, 2017 IS ULTRA VIRES SECTION 54(3) OF CGST ACT, 2017, WHICH PROVIDED FOR REFUND OF ANY UNUTILIZED INPUT TAX CREDIT ACCUMULATED ON ACCOUNT OF INVERTED DUTY STRUCTURE THEREBY COVERING CREDIT OF BOTH INPUTS AND INPUT SERVICES . THIS W.P. COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:-