https://www.taxtmi.com/caselaws?id=795451 Refund of accumulated unutilised input tax credit under an inverted duty structure is available where ancillary inputs attract higher tax rates than output supplies, even if the principal input and output carry the same rate. Section 54(3) does not distinguish between principal and ancillary inputs when determining credit accumulation. Chemicals, packing materials and other higher-taxed inputs may therefore create refundable accumulated credit. Rule 89(5) prescribes the applicable computation where inputs bear differing rates. A circular restricting refund by reference only to the principal input cannot override the statutory entitlement and had been declared unconstitutional. The refund must be processed under Rule 89(5) with applicable statutory interest. en-us Tue, 14 Jul 2026 00:00:00 +0530 Wed, 22 Jul 2026 08:48:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795451 Refund of accumulated unutilised input tax credit under an inverted duty structure is available where ancillary inputs attract higher tax rates than output supplies, even if the principal input and output carry the same rate. Section 54(3) does not distinguish between principal and ancillary inputs when determining credit accumulation. Chemicals, packing materials and other higher-taxed inputs may therefore create refundable accumulated credit. Rule 89(5) prescribes the applicable computation where inputs bear differing rates. A circular restricting refund by reference only to the principal input cannot override the statutory entitlement and had been declared unconstitutional. The refund must be processed under Rule 89(5) with applicable statutory interest. Case-Laws GST Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795451