2024 (9) TMI 1284 - HC - GST

Refund of the Input Tax Credit (ITC) accumulated due to Inverted Tax Structure - Circular No.135/15/2020-GST - HELD THAT - The Division Bench of this court in the case of BAKER HUGHES ASIA PACIFIC LIMITED VERSUS UNION OF INDIA, THE STATE OF RAJASTHAN, THE DEPUTY COMMISSIONER, STATE TAX, CIRCLE BARMER, RAJASTHAN, CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS 2022 (7) TMI 73 - RAJASTHAN HIGH COURT , while dealing with the challenge of the Circular No.135/15/2020-GST held it to be in conflict with Section 54 (3)(ii) of the Act. It was also considered that claim of refund of ITC was prior to date of issuance of the Circular. The additional reason given shall not nullify the fact that the Circular had not stood the judicial scrutiny. The Appellate Authority has allowed the appeal solely relying upon the Circular No.135/15/2020-GST. Consequently, the impugned order is set aside. The matter is remitted back to the Appellate Authority to decide the appeal afresh in accordance with law - petition allowed by way of remand.

Summary

The High Court set aside the order of the Department rejecting a refund claim for accumulated Input Tax Credit, citing conflict with the CGST Act. The matter was remitted back to the Appellate Authority for a fresh decision. The writ petition was allowed.