https://www.taxtmi.com/caselaws?id=445318 Refund of unutilised ITC under proviso (ii) to Section 54(3) CGST Act was rejected on the premise that input and output tax rates were "more or less the same" and that credit accumulation was due to high purchases remaining in stock. The HC held that Section 54(3) must be strictly construed: "inputs" and "output supplies" are consciously plural, and refund is available where accumulated credit is attributable to inputs taxed higher than output supplies, even if the differential is marginal. It further held that Rule 89(5) governs computation through the statutory formula based on adjusted turnover, not stock position. The rejection orders were set aside and refund claim directed to be reconsidered per Rule 89(5). en-us Tue, 31 Oct 2023 00:00:00 +0530 Mon, 12 Jan 2026 15:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445318 Refund of unutilised ITC under proviso (ii) to Section 54(3) CGST Act was rejected on the premise that input and output tax rates were "more or less the same" and that credit accumulation was due to high purchases remaining in stock. The HC held that Section 54(3) must be strictly construed: "inputs" and "output supplies" are consciously plural, and refund is available where accumulated credit is attributable to inputs taxed higher than output supplies, even if the differential is marginal. It further held that Rule 89(5) governs computation through the statutory formula based on adjusted turnover, not stock position. The rejection orders were set aside and refund claim directed to be reconsidered per Rule 89(5). Case-Laws GST Tue, 31 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445318