https://www.taxtmi.com/caselaws?id=412281 The SC upheld the validity of Rule 89(5) against challenges that it was ultra vires Section 54(3)(ii) of the CGST Act. The Court held that Parliament specifically restricted refunds of unutilized ITC to situations where credit accumulated due to higher tax rates on input goods compared to output supplies, excluding input services from refund eligibility. The Court distinguished between "input" (goods only) and "inputs" (plural), ruling that the statutory provision intentionally limited refunds to input goods alone, not services. The SC allowed appeals against Gujarat HC's judgment in VKC Footsteps case which had struck down Rule 89(5), while dismissing appeals against Madras HC's contrary decision in Tvl. Transtonnelstroy case. en-us Mon, 13 Sep 2021 00:00:00 +0530 Tue, 13 May 2025 11:32:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=412281 The SC upheld the validity of Rule 89(5) against challenges that it was ultra vires Section 54(3)(ii) of the CGST Act. The Court held that Parliament specifically restricted refunds of unutilized ITC to situations where credit accumulated due to higher tax rates on input goods compared to output supplies, excluding input services from refund eligibility. The Court distinguished between "input" (goods only) and "inputs" (plural), ruling that the statutory provision intentionally limited refunds to input goods alone, not services. The SC allowed appeals against Gujarat HC's judgment in VKC Footsteps case which had struck down Rule 89(5), while dismissing appeals against Madras HC's contrary decision in Tvl. Transtonnelstroy case. Case-Laws GST Mon, 13 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=412281