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TMI Blog2024 (11) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... Singh, Additional Solicitor General Mr. Anshuman Singh, Sr. SC, CGST & CX For the State: Mr. Vikash Kumar, SC-11 Mr. Raghwanand, GA-11 Mr. Pratik Kumar, Advocate ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) The petitioner is before this Court claiming a refund of the tax paid by the petitioner on the 'Inverted Duty Structure' applicable to the business carried on by the petitioner; being bottling of LPG. 2. The petitioner purchases LPG in bulk after paying the applicable tax. The bulk LPG purchased is bottled in cylinders and sale is made to customers, collecting tax from commercial users; at the same rate of purchase of LPG and to the domestic users, at a lesser rate. As per Section 54(3)(ii) of the Central Goods and Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 019-2020. The amounts so assessed and demanded were also set off from the credit ledger of the petitioner's input credit. The copy of the demand orders and the recovery made are produced as Annexure-P/6 series. An appeal was filed in which the Appellate Authority by Annexure-P/7 series allowed the appeal and the recovered amounts were credited back to the credit ledger on 24.08.2022. 6. It is claimed by the petitioner that the order in appeal passed on 20.02.2022 was received after six months on 15.08.2022 and the limitation had to commence from the said date. It is also contended that the due date for filing of refund, for the Financial Year 2018-2019 has been extended till 31.03.2023 by the Central Board of Indirect Taxes and Customs vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent application is filed for refund of the amounts set off from the credit ledger as demands raised for the year 2018-19 and 2019-20. 10. We have to pertinently reckon the peculiar facts that arise in the above case. There was a credit available in the ledger of the petitioner for the Financial Years 2018-19 which was to be refunded. However, before the limitation period for filing a refund application expired on 20.03.2021, the amounts were set off as against the demand raised for the Financial Years 2018-19 and 2019-20; on 20.03.2021. Hence, there was no amount remaining in the credit ledger of the petitioner as inverted duty for the purpose of refund. 11. When the amounts remaining in the credit ledger was set off as against the dema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, points out that the uploading was not possible since the 'Inverted Duty Structure' refund is possible only for two years. We reiterate, that the amount now remaining in credit of the petitioner is the tax amounts refunded on the appellate order. It lost the character of amounts due under the 'Inverted Duty Structure' when it was recovered and set off on the demand raised in assessment. The physical application filed by the petitioner shall hence be considered under Clause (2) of the second Explanation to Section 54.
15. The writ petition is allowed with the above direction. The refund shall be effected, at any rate within two months from the date of receipt of the certified copy of this judgment. X X X X Extracts X X X X X X X X Extracts X X X X
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