https://www.taxtmi.com/caselaws?id=801343 Refund of unutilised Compensation Cess credit under the inverted tax structure mechanism requires accumulation because the tax rate on inputs exceeds the rate on output supplies under section 54(3)(ii). Eligibility to take such credit and the absence of blocked-credit restrictions do not independently establish a cash-refund entitlement. Compensation Cess credit is ordinarily restricted to payment of Compensation Cess, and inability to offset it against other liabilities does not itself justify refund. Rule 89(5) cannot create substantive eligibility. Circulars concerning qualifying zero-rated supplies do not extend unconditional refund treatment to domestic supplies that do not attract Compensation Cess; accumulated credit attributable to such supplies is inadmissible unless statutory refund conditions are met. en-us Tue, 13 Oct 2026 00:00:00 +0530 Mon, 19 Oct 2026 07:01:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801343 Refund of unutilised Compensation Cess credit under the inverted tax structure mechanism requires accumulation because the tax rate on inputs exceeds the rate on output supplies under section 54(3)(ii). Eligibility to take such credit and the absence of blocked-credit restrictions do not independently establish a cash-refund entitlement. Compensation Cess credit is ordinarily restricted to payment of Compensation Cess, and inability to offset it against other liabilities does not itself justify refund. Rule 89(5) cannot create substantive eligibility. Circulars concerning qualifying zero-rated supplies do not extend unconditional refund treatment to domestic supplies that do not attract Compensation Cess; accumulated credit attributable to such supplies is inadmissible unless statutory refund conditions are met. Case-Laws GST Tue, 13 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801343