inverted duty refund rejected as itc claimed cancelled dealers in past period

[satbir singhwahi]

Sir Inverted duty refund rejected on two grounds

1. Claimant availed ITC from the cancelled/suspended suppliers but no bill in current period of refund filed.

2. Person violates the provision of Rule 86B, no violation as paying Income tax 9 to 10 lacs each year. Kindly guide to file appeal with case laws 

AI Summary

Refund denied for inverted-duty credit where ITC from later-cancelled suppliers; entitlement depends on closing ITC, Rule 86B, Sections 73/74 Claimant's inverted-duty refund was denied because input tax credit (ITC) had been availed against suppliers whose registrations were later cancelled and an alleged violation of Rule 86B; respondent guidance explains refund entitlement depends on the ITC closing balance for the refund period, not the period ITC was originally taken, and subsequent supplier cancellation does not nullify previously valid ITC unless the ITC has been successfully disallowed through separate adjudication under Sections 73/74; similarly, alleged Rule 86B contraventions require case-specific proof; several judicial decisions hold refund rejection on supplier cancellation alone is unsustainable absent prior ITC disallowance.