M/S Shakti Industries vs. Union Of INDIA And Others - Punjab and Haryana High Court, 26 August 2026

IN THE HIGH COURT OF PUNJAB AND HARYANA IN THE HIGH COURT OF PUNJAB AND HARYANA IN THE HIGH COURT OF PUNJAB AND HARYANA IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH AT CHANDIGARH AT CHANDIGARH AT CHANDIGARH DATE OF DECISION : DATE OF DECISION : DATE OF DECISION : DATE OF DECISION : 26thththth AUGUST AUGUST AUGUST AUGUST, 2026 , 2026 , 2026 , 2026 M/s M/s M/s M/s. Shakti Indusries, Sangrur Shakti Indusries, Sangrur Shakti Indusries, Sangrur Shakti Indusries, Sangrur …. . . . Petitioner Petitioner Petitioner Petitioner Versus Versus Versus Versus Union of India Union of India Union of India Union of India & & & & others others others others …. Respondent . Respondent . Respondent . Respondents CORAM CORAM CORAM CORAM : HON’BLE HON’BLE HON’BLE HON’BLE THE ACTING CHIEF JU THE ACTING CHIEF JU THE ACTING CHIEF JU THE ACTING CHIEF JUSTICE STICE STICE STICE

HON’BLE M HON’BLE M HON’BLE M HON’BLE MR. JUSTICE . JUSTICE . JUSTICE . JUSTICE ROHIT KAPOOR ROHIT KAPOOR ROHIT KAPOOR ROHIT KAPOOR

* * * * Present : Mr. Sandeep Goyal, Senior Advocate with

Mr. Aditya Gupta, Advocate for the petitioner.

Mr. Sourabh Goel, Sr. Standing Counsel, CBIC/UOI with Ms. Himanshi Gautam, Advocate and Ms. Drishti Saraf, Advocate for respondent(s)-UOI. * * * * ASHWANI KUMAR MISHRA ASHWANI KUMAR MISHRA ASHWANI KUMAR MISHRA ASHWANI KUMAR MISHRA, , , , AC AC AC ACJ. J. J. J. (Oral) (Oral) (Oral) (Oral)

Petitioner’s claim for refund of accumulated Input Tax Union of India, [2025] 172 [2025] 172 [2025] 172 [2025] 172 taxmann.com 133 (Gujarat) taxmann.com 133 (Gujarat) taxmann.com 133 (Gujarat) taxmann.com 133 (Gujarat). Reliance is also placed upon a Division RAJ KUMAR 2026.09.07 10:01 I attest to the accuracy and integrity of this document -2- (P.) Ltd. Vs. Deputy Commissioner ST, , , , [2025] 171 taxmann. Com 240. [2025] 171 taxmann. Com 240. [2025] 171 taxmann. Com 240. [2025] 171 taxmann. Com 240. 3. Learned counsel representing revenue opposes the claim of the petitioner based upon circular dated 10.11.2022. 4. Section 54(3) of the CGST Act permits a registered person to claim refund of unutilized tax credit at the end of any tax period where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on outputs. This provision contains a clause where the Government, by a notification, can exempt a particular good or class of goods, from availing the benefits of refund of tax. The notification issued in the year 2017-18, exempting certain goods, did not [2025] 174 taxmann.com 473 (SC) [2025] 174 taxmann.com 473 (SC) [2025] 174 taxmann.com 473 (SC) [2025] 174 taxmann.com 473 (SC).

The circular, which has been relied upon by the respondents does not furnish any basis to restrict the entitlement of refund only to RAJ KUMAR 2026.09.07 10:01 I attest to the accuracy and integrity of this document -3- applications made prior to 18.07.2022. Since the specific provision contained in Section 54(3) permits such claim to be made till the end of the tax period, the restriction imposed by the circular providing that the refund could be claimed only up till 18.07.2022, cannot have the approval of this court, particularly for the reasons recorded in the aforesaid two judgments.

In that view of the matter the petitioner succeeds and the present petition stands allowed. The impugned order passed by the adjudicating authority is consequently set aside.

( ASHWANI ASHWANI ASHWANI ASHWANI KUMAR MISHRA ) KUMAR MISHRA ) KUMAR MISHRA ) KUMAR MISHRA ) ACTING CHIEF JUSTICE ACTING CHIEF JUSTICE ACTING CHIEF JUSTICE ACTING CHIEF JUSTICE

26thththth August August August August, 2026 , 2026 , 2026 , 2026 ‘raj’ ( ( ( ( ROHIT KAPOOR ROHIT KAPOOR ROHIT KAPOOR ROHIT KAPOOR ) JUDGE JUDGE JUDGE JUDGE

Whether speaking/reasoned:

Yes No Whether Reportable:

Yes No RAJ KUMAR 2026.09.07 10:01 I attest to the accuracy and integrity of this document