Refund of unutilised GST Compensation Cess ITC on coal for zero-rated exports allowed; Section 11(2) proviso inapplicable

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....The HC held that unutilised input tax credit of GST Compensation Cess paid on coal, used in manufacture of goods exported on payment of IGST as zero-rated supplies, is refundable. It reiterated that when zero-rated supplies are made with payment of IGST, and no Compensation Cess is leviable on the finished goods, the assessee cannot utilise the input tax credit of such Cess. Consequently, the bar under the proviso to Section 11(2) of the relevant enactment is inapplicable. The HC quashed and set aside the impugned rejection orders and directed the revenue authorities to process the refund applications of the petitioner-assessee and sanction the claimed refund of unutilised Compensation Cess credit. Petition allowed.....