Unutilized cess ITC refundable when IGST paid under Section 16(3) on zero-rated exports; proviso to Section 11(2) inapplicable

SC dismissed the special leave petition and declined to exercise jurisdiction under Art. 136, thereby upholding the HC's conclusion that the petitioner is entitled to refund of unutilized input tax credit of cess paid on inputs used to manufacture goods for export. The HC had found that where IGST was paid under Section 16(3) on zero-rated supplies and cess is not payable on those supplies, the proviso to Section 11(2) does not apply and the unutilized ITC of cess is refundable, despite challenges to Circulars issued under Section 168.

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"Delay condoned." The Court, noting the absence of the respondent, states that "in view of the finding recorded in paragraph 21 of the impugned order, we do not deem it necessary to exercise our jurisdiction under Article 136 of the Constitution of India." Consequentially, the "Special Leave Petition is dismissed leaving the question of law, if any, open." All "pending application(s), if any, shall stand disposed of." The decision rests on the impugned order's paragraph 21, and the Court expressly refrains from invoking its extraordinary jurisdiction under Article 136, thereby limiting its intervention to leave dismissal while not pronouncing on any substantive question of law that may remain. Procedural relief sought is therefore denied, with ancillary applications concluded.

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