SLP dismissed; Rule 89(5) amendment via Notification 14/2022 held clarificatory, retrospective for Section 54(1) refund claims

SC refused to interfere with the HC judgment quashing the rejection of the taxpayer's refund claim of unutilized input tax credit. The HC had set aside the order dated 24.08.2023 and held that Circular No. 181/22 dated 10.11.2022, to the extent it stated that the amendment to Rule 89(5) was not clarificatory, was invalid. The HC further held that Notification No. 14/2022, amending Rule 89(5), is curative and clarificatory and therefore applies retrospectively to refund or rectification applications filed within two years under section 54(1) of the Act. The SLP was dismissed under Article 136.

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The Supreme Court, through Hon'ble Justices Abhay S. Oka and Ujjal Bhuyan, heard the Special Leave Petition (SLP) under Article 136 of the Constitution of India. The learned Additional Solicitor General appeared for the petitioners, while no counsel appeared for the respondent. The Court held that "no case for interference is made out" and accordingly dismissed the SLP. All pending applications were disposed of.

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