Vodafone Idea Limited vs. Union Of INDIA & Ors.

W.P.(C)/15797/2022HC DelhiGSTCNR DLHC01080950202225 November 2022Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MS. JUSTICE TARA VITASTA GANJU5 pages

For Petitioner: Ms Charanya Lakshmi Kumaran, Advocate with Mr Karan Sachdev, Mr Yogendra Aldak, Mr Agrim Arora, Ms Vaishali Goyal and Ms Bhavya Shukla, AdvocatesFor Respondent: Mr Ravi Prakash, CGSC with Mr Manas Tripathi, Advocate for UOI. Ms Sonu Bhatnagar, Sr. Standing Counsel with Ms Anushree Narain, Ms Venus Mahrotra and Ms Nishtha Mittal, Advocates for R-2 & 3

AI SummaryRemanded

Held

The Court held that Section 18(3) and Rule 41 were not applicable as they deal with the transfer of unutilised Input Tax Credit upon business transfer, not refund of tax paid on exported services. The Court found that the amalgamation scheme, approved by NCLT, clearly stipulated that all tax liabilities and refunds of the transferor company would vest with the transferee company.

Facts

Vodafone Idea Limited sought a refund of IGST paid on exported services. The revenue authorities denied the refund, citing Section 18(3) of the CGST Act and Rule 41 of the CGST Rules, arguing that the transferee company could not claim refunds of the transferor company.

Key Issues

Whether the transferee company can claim a refund of IGST paid by the transferor company for exported services, especially when the amalgamation scheme vests such rights with the transferee.

Sections Cited

Section 18(3), Rule 41

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

$~2 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 15797/2022 VODAFONE IDEA LIMITED ......Petitioner Through: Ms Charanya Lakshmi Kumaran, Advocate with Mr Karan Sachdev, Mr Yogendra Aldak, Mr Agrim Arora, Ms Vaishali Goyal and Ms Bhavya Shukla, Advocates. versus UNION OF INDIA & ORS. ......Respondents Through: Mr Ravi Prakash, CGSC with Mr Manas Tripathi, Advocate for UOI. Ms Sonu Bhatnagar, Sr. Standing Counsel with Ms Anushree Narain, Ms Venus Mahrotra and Ms Nishtha Mittal, Advocates for R-2 & 3. CORAM: HON'BLE MR. JUSTICE RAJIV SHAKDHER HON'BLE MS. JUSTICE TARA VITASTA GANJU

O R D E R %

25.11.

2022

The substantive prayer made in the writ petition reads as follows: - “(a) Issue a writ of certiorari or any other appropriate writ or order or direction in the nature thereof, quashing the Order in Appeal No. 255/2021-22 dated 02.02.2022 passed by Additional Commissioner, CGST Appeals-II (enclosed at Annexure P1 of this Writ Petition) to the extent it is prejudicial to the Petitioner and consequently direct the Respondent No. 2 to grant refund amounting to Rs. 1,22,99,857/- along

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