2024 (7) TMI 1160

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....claim in Application Reference No.AA330124003736P dated 02.01.2024 under Section 54 (3) of the respective GST enactments read with Rule 89(1) of the GST Rules, 2017. 3. Since the petitioner was under Inverted Duty Structure, the refund claim of the petitioner has been rejected by the respondent by placing reliance on para 3.2 of CBEC Circular No.135/05/2020-GST bearing reference CBEC-20/01/06/2019-GST. Para 3.2 of the above Circular reads as under: "3.2 It may be noted that the refund of accumulated ITC in terms clause (ii) of sub-section (3) of section 54 of the CGST Act is available where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies. It is noteworthy that, the input....

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....in the production of 100% Cotton yarn is 5% IGST or 2.5% CGST and 2.5% SGST and whereas the rate of tax on output goods 100% Cotton yarn is also 5% IGST or 2.5% CGST and 2.5% SGST. Hence it appeared that the output goods 100% cotton yarn does not fall under the Category of inverted duty structure for the purpose of claiming refund. Hence, GST refund of Rs. 11,97,62,459/- filed, under the category of "Inverted Duty Structure" for the month of November, 2023 is liable to be rejected. 11. Taxpayer quoted only orders of High Court of other states in their written reply, not even mentioned a single order of High Court of Madras. Hence the matter is not come under the category of Res judicata. Accordingly, I pass the following order. ORDER I....