M/S. Celon Laboratories PVT. LTD. vs. Deputy Commissioner Of Central Tax And Customs
Held
The Court upheld the Supreme Court's decision on Rule 89(5) but remanded the matter for a fresh decision on the levy of interest and imposition of penalty, considering the petitioner's bona fide belief and lack of suppression.
Facts
The petitioner challenged Rule 89(5) of the CGST Rules, 2017, and consequential orders demanding refund of unutilized input tax credit, interest, and penalty. The Supreme Court had previously upheld the validity of Rule 89(5).
Key Issues
Whether the demand of interest and penalty is justified when the refund was claimed based on a High Court ruling later overturned by the Supreme Court, and whether Rule 89(5) is ultra vires.
Sections Cited
Rule 89(5), Section 73, Section 50
AI-generated summary — verify with the full judgment below
[ 32es I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY EIGHTH DAY OF DECEMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C. V. BHASKAR REDDY WRIT PETITION NOS: 16917. 17434. 17443, 17447, 17465 & 17488 0F 2020 WP NO 16917 OF 20201 Between: its Whole{ime Director, Mr. M. adhapur, Hyderabad-S00 081 . ...PETITIONER AND 1 . Deputy Commissioner, of Central Tax and Customs, Gachibowli Division, Hyderabad.
Joint Commissioner, of Customs and Central Tax (Appeals-1), GST Bhavan, Hyderabad.
Union of lndia, rep. by its Secretary, t\4inistry of Finance, Central Secretariat, New Delhi.
Central Board of lndirect Tax, And Customs, GST Policy Wing, Government of lndia, lrlinistry of Finance, New Delhi.
State of Telangana, rep. by its Principal Secretary to Government, Revenue (CT-ll) Department, Secretariat, Hyderabad. ...RE.,.NDENTS Petition under Artide 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ or order or direction, more particularly in t
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