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

[Satbir singh wahi]

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

Inverted duty refund entitlement cannot be denied merely due to supplier cancellation; ITC must be adjudicated before denial.
Rejection of an inverted duty refund because ITC was earlier availed from suppliers later cancelled is unsustainable where the ITC was validly taken and not reversed by separate adjudication. Refund entitlement is determined by the ITC ledger for the refund period, distinct from time of availment; subsequent supplier cancellation does not invalidate past supplies absent proceedings reversing the ITC. Rule 86B compliance must be assessed on statutory criteria and cannot substitute for adjudication on ITC eligibility.