TaxTMI 
TaxTMI 
2025 (11) TMI 1265
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....led on similar facts for common relief to declare Clause 2 of Circular No. 181/13/2022-GST dated 10th November, 2022 issued by Principal Commissioner (GST) under Section 54 (3) of the Central GST Act, 2017, ultra vires that Act. For ready reference, the issue identified and the clarification issued under that Circular reads as below. S. No. Issue Clarification 2. Whether the restriction placed on refund of unutilised input tax credit on account of inverted duty structure in case of certain goods falling under chapter 15 and 27 vide Notification No. 09/2022-Central Tax (Rate) dated 13.07.2022, which has been made effective from 18.07.2022, would apply to the refund applications pending as on 18.07.2022 also or whether the same....
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....rit Petition Nos. 5253 of 2023, 12485 of 2024, 12487 of 2024 and 12488 of 2024, decided on 29th January, 2025. Further, it has been stated that same view has been taken by the Gujarat High Court in Patanjai Foods Ltd. Vs. Union of India and others, 2025 U.P.T.C. [Vol.119]-541. Against the judgment in Priyanka Refineries (supra), the revenue carried the matter to the Supreme Court, arising from the judgment in the connected writ filed by M/s. Gemini Edibles and Fats India Limited, being Special Leave to Appeal (C) Nos. 12495-12498/2025. That Special Leave to Appeal was dismissed vide order dated 09.05.2025. 4. Drawing exact parity and relying heavily on the decision of Andhra Pradesh High Court in Priyanka Refineries (supra), it has been ....
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....e 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 registered person, by making an application under Section 54 of the CGST Act. 20. In the circumstances, we are of the opinion that Circular No.181/13/2022-GST, dated 10.11.2022, would have to be struck down, to the extent of the clarification that the restriction imposed by the Notification, dated 13.07.2022, would be applicable in re....
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....though they are pertaining to a period prior to the date of notification, is wholly arbitrary, discriminatory and ultra-vires Section 54 of the GST Act as well as violating Article 14 of the Constitution of India. The circular itself states that the notification dated 13.7.2022 has prospective effect. Even otherwise, the restriction contained in notification dated 13.7.2022 was introduced for the first time on such date and by expressly stating that it would apply prospectively and that too from 18.7.2022. If that be so, then refund pertaining to period prior to 13.7.2022 cannot be affected by such notification. Section 54(1) of the GST Act clearly gives a time limit of 2 years for filing of the refund application and such time limit was ex....
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.... Rs. 17,00,709/- Therefore, it will be seen that against the petitioner's refund application dated 5.12.2023, there has been an adjudication of the same by order dated 12.1.2024, by which the petitioner's refund application was accepted and the refund sanction granted. It is further not in dispute that no appeal under Section 107 or Revision under Section 108 of the CGST Act, 2017 has been preferred by the respondents, challenging the adjudication of the petitioner's refund application and the consequent refund order sanctioned on 12.1.2024. Therefore, in the opinion of this Court, the grant of refund to the petitioner by order dated 12.1.2024 had become final and no show cause notice could be issued by the respondents to take a....