TaxTMI 
TaxTMI 
2025 (11) TMI 1633
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....efund claim of the same petitioner for different periods, they have been heard together and would be disposed of by this common judgment. 3. Rule returnable forthwith. Learned advocate Ms. Hetvi Sancheti waives service of notice of rule on behalf of the respondents. 4. For the sake of convenience facts are recorded from Special Civil Application No. 9876 of 2025. 5. Brief facts of the case are that the petitioner no. 1 company is engaged in the manufacture and sale of various chemical products including the supply of the said products to SEZ units as well as exports outside India. The petitioner is registered under the provisions of the Central/State Gods and Service Tax Act, 2017 (for short 'the GST Act') in the State of Gujarat. 6. In order to manufacture the finished products, the petitioner requires power in the form of electricity. Therefore, in October, 2020 the petitioner purchased coal from the market to generate its own captive power via the captive power plant for use in the manufacturing activity. 7. It is the case of the petitioner that section 8 of the Goods and Service Tax (Compensation to States) Act, 2017 (For short "the Cess Act") provides for levy o....
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.... relying on the impugned circular No.45/19/2018-GST dated 30.05.2018 and Circular No. 125/44/2019-GST dated 18.11.2019. 13. Petitioner company being aggrieved with the impugned orders have preferred the present petitions. 14. The issue involved in all these petitions is simialr and therefore, facts of each petition are not recorded for the sake of brevity, however details of refund claimed by the petitioner along with amount of refund, tax period and date of orders of rejection of the refund claim are enumerated below in the tabular form: Sr.No. SCA No. Period for which the refund is claimed Tax period in FORM GST RFD-01 Amount of refund (Rs.) Date of refund application in Form GST RFD-01 Date of refund rejection order in FORM GST RFD-06 Date of appeal rejection order in FORM GST APL-04 1 11016 of 2025 April '18 to March'19 Sep-19 7,06,30,525 28/08/2020, 17/09/2020 06/11/2020 31/01/2022 2 10986 of 2025 April'20 to August'20 Aug-20 70,29,925 22/04/2021 17/05/2021 19/05/2022 3 10923 of 2025 Sept'20 Sep-20 7,88,202 12/06/2021 01/07/2021 19/05/2022 4 9876 of 2025 Oct'20 Oct....
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.... is used by the petitioner in the course of manufacture and sale of finished products. 18. It was submitted by learned advocate Mr. Abhay Desai that the issue is now no more res integra in view of the decision of this Court in the case of Patson Papers Pvt Ltd vs. Union of India. rendered in Special Civil Application No. 26250 of 2022 which was followed by this Court in the decision in case of Atul Ltd. v. Union of India (Judgment dated 24.07.2025 rendered in Special Civil Application No. 19949 of 2022 and allied matters) 19. Per contra, learned advocate Ms. Hetvi Sancheti for the respondent, conceded to the fact that the issue is now no more res integra pursuant to the decision of this Court in Patson Papers (supra) and in case of Atul Ltd. (supra) and therefore, appropriate orders may be passed. 20. Having heard the learned advocates appearing for the respective parties and having perused the material on record, the issue on hand is no more res integra pursuant to the decision of this Court in case of Atul Ltd.(supra), wherein following the decision in case of Patson Papers (supra), the writ petitions were disposed of with a direction to the respondent to process refund ....
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....of unutilized Input Tax Credit qua Cess will be available only if the export is without payment of tax and as the petitioner has paid IGST on the goods which were exported, the refund of Cess as well as the relatable to the inputs utilized for production of the goods which are exported was held to be inadmissible. The petitioner in the reply clarified that the petitioner has not paid any GST compensation Cess on the goods exported and as such goods being zero rated supply, the petitioner is entitled to the refund of Cess as the provisions of the Cess Act shall apply mutatis mutandis as the same would be applicable in case of the GST. Respondent no 3 also issued notices proposing to withdraw the refund of Cess already granted to the petitioner 8. Being aggrieved, the petitioner has challenged such show cause notice proposing to recover the refund already sanctioned as well as rejecting the refund applications filed by the petitioners for refund of the Cess paid while purchasing the coal which was utilized for manufacture of the goods which are exported by the petitioner. XXX XXX XXX 18. Having heard the learned advocates appearing for both the parties and ....
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....ions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply. [(3) A registered person making zero rated supply shall be eligible to claim refund of unutilised input tax credit on supply of goods or services or both, without payment of integrated tax, under bond or Letter of Undertaking, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder, subject to such conditions, safeguards and procedure as may be prescribed: PROVIDED that the registered person making zero rated supply of goods shall, in case of non-realisation of sale proceeds, be liable to deposit the refund so received under this sub-section along with the applicable interest under section 50 of the Central Goods and Services Tax Act within thirty days after the expiry of the time limit prescribed under the Foreign Exchange Management Act, 1999 (42 of 1999) for receipt of foreign exchange remittances, in such manner as may be prescribed (4) The Government may, on the recommendation of the Co....
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.... instance, cess is levied on coal, which is an input for the manufacture of aluminum products, whereas cess is not levied on aluminum products 5.2 In this regard, section 16(2) of the Integrated Goods and Services Tax Act, 2017 (IGST Act for short) states that, subject to the provisions of section 17(5) of the CGST Act, credit of input tax may be availed for making zero rated supplies Further, as per section 8 of the Goods and Services Tax (Compensation to States) Act, 2017, (hereafter referred to as the Cess Act), all goods and services specified in the Schedule to the Cess Act are leviable to cess under the Cess Act, and vide section 11 (2) of the Cess Act, section 16 of the IGST Act is mutatis mutandis made applicable to inter-State supplies of all such goods and services. Thus, it implies that all supplies of such goods and services are zero rated under the Cess Act. Moreover, as section 17(5) of the CGST Act does not restrict the availment of input tax credit of compensation cess on coal, it is clarified that a registered person making zero rated supply of aluminum products under bond or LUT may claim refund of unutilized credit including that of compensation cess pai....
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....ACT and the GST (Compensation to State) Act, 2017 (for short 'the Cess Act') as well as para-5 of the Circular No.45/19/2018 and para-42 of Circular No 125/44/2019, the respondent authority appears to have misinterpreted the circulars while rejecting the refund claim applications filed by the petitioner for refund of input tax credit of cess paid by the petitioner for purchase of coal utilized for manufacture of the goods which are exported. As per the provision of Section 54(3) of the GST Act read with Section 16(3) of the IGST Act and Section 11(2) of the Cess Act, the petitioner can claim the refund of unutilized input tax credit for purchase of coal used for manufacture of goods exported being zero rated supply The petitioner has paid IGST on the goods exported by it, however, the petitioner was not required to pay any compensation cess as the goods manufactured by the petitioner are exempted from the levy of compensation cess Therefore, while applying the above provisions, admittedly the compensation cess was not paid at the time of export of goods by the petitioner, the petitioner, therefore, is entitled to refund of input tax credit of the compensation cess paid on p....