AI Drafter 
TaxTMI 
TaxTMI 
2025 (2) TMI 302
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....t Counsel), GP For Commercial Tax. COMMON ORDER: As all the four Writ Petitions relate to the same issues, they are being disposed of, by way of a common order. 2. The petitioners are engaged in the business of manufacturing, distributing and branding of edible oils and specialty fats in India. In the process of the manufacture of these products, the petitioners had sourced various raw materials on which GST had already been paid. It so transpired that the rate of GST payable on edible oils and specialty fats was lower than the rate of tax levied on the inputs or raw materials sourced by the petitioner. 3. Section 5 (3) of the CGST Act provides for a situation where the input tax credit available in the ledger of a registered pe....
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....30326P dated 20.01.2023 July, 2021 Deficiency Memo dated 02.02.2023 Rs. 5,01,542/- AA370123030341X dated 20.01.2023 August, 2021 Deficiency Memo dated 02.02.2023 Rs. 3,33,538/- AA370123030361V dated 20.01.2023 September, 2021 Deficiency Memo dated 02.02.2023 Rs. 1,21,419/- AA370123030387H dated 20.01.2023 October, 2021 Deficiency Memo dated 02.02.2023 Rs. 4,86,540/- AA370123030413U dated 20.01.2023 November, 2021 Deficiency Memo dated 02.02.2023 Rs. 6,22,609/- AA370123030436M dated 20.01.2023 December, 2021 Deficiency Memo dated 02.02.2023 Rs. 4,43,280/- ....
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....ded for refund of such input tax credit, in cash, certain products were deemed ineligible for such benefit being given. The Central Government, from time to time, has been issuing notifications listing out the products which are ineligible for the benefit of Section 54 of CGST Act. One such notification issued by the Central Government is Notification No. 5/2017-Central Tax (Rate) dated 28.06.2017. Subsequently, another Notification bearing No. 9/22-Central Tax (Rate), dated 13.07.2022 was issued. In this notification dated 13.07.2022, the Government included various types of edible oils and specialty fats. By such inclusion, the manufacturers/sellers of such products become ineligible for grant of refund, under Section 54 of the CGST Act. ....
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....d in Notification No. 9/22. 11. The learned counsel for the petitioners assail the circular No. 181/13/2022-GST, dated 10.11.2022, on the ground that neither the notification bearing No. 5/2017-Central Tax (Rate), dated 28.06.2017 nor the notification bearing No. 9/22-Central Tax (Rate), dated 13.07.2022 had placed any such bar on a claim for refund. They would submit that a plain reading of these two notifications had made the dealers of such products, ineligible to claim refund, in relation to any input tax credit which arises after 18.07.2022. They would submit that the notification does not in any manner bar an application being filed after 18.07.2022 for periods before 18.07.2022. 12. Sri B.V.S. Chalapathi Rao, learned counsel fo....
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....aim refund of any unutilized input tax credit at the end of any tax period: Provided that no refund of unutilized input tax credit shall be allowed in cases other than- (i) Zero rated supplies made without payment of tax; (ii) Where the credit has accumulated on account of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council: Provided further that no refund of unutilized input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty: Provided also that no refund of input....
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....uld not mean that, an application cannot be made after 18.07.2022. Restriction would apply only to the extent of input tax credit arising after 18.07.2022. 18. In the impugned circular, while clarifying that the notification is prospective, the Government went on to state that applications cannot be made after 18.07.2022. This Court finds that the said clarification is neither logical nor in accordance with the understanding of law in such cases. 19. This Court would hold that once a stipulation is made that the notification, in question, operates from 18.07.2022, it would mean that any input tax credit which arose on account of the mismatch between the input tax and the output tax, prior to 18.07.2022, can always be recovered by the ....