TaxTMI 
TaxTMI 
2025 (12) TMI 1826
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...., 2438, 2439, 2442, 2445 and 2446 of 2023; dated 28.10.2024 in W.P. Nos.24133, 35895, 36000, 36077, 36130, 36186 and 37285 of 2025; dated 31.08.2024 in W.P. Nos.24224, 24500, 24578, 35222, 35228, 35470 and 36078 of 2025 which have been confirmed in appeals by respondent No.3 vide impugned orders dated 19.08.2022 in W.P. Nos. 2391, 2404, 2411, 2412, 2418, 2438, 2439, 2442, 2445 and 2446 of 2023; dated 07.05.2025 in W.P. Nos.24133, 24224, 24500, 24578, 35222, 35228, 35470, 35895, 36000, 36077, 36078, 36130, 36186 and 37285 of 2025. The relevant details in respect of which the petitioner filed individual Writ Petitions indicating the tax period, the amount of refund claim, the date of Order-In-Original and the date of Order-In-Appeal are furnished in the form of tabulation chart hereunder: S. No. Writ Petition Tax period Amount of refund (in Rs.) Date of Order in Original Date of Order in Appeal 37 WP 37285/2025 Jun-22 2,77,635 28/10/24 07/05/25 38 WP 2391/2023 Jul-18 2,38,936 04/05/21 19/08/22 39 WP 2404/2023 Aug-18 66,82,892 04/05/21 19/08/22 40 WP 2411/2023 Oct-18 39,90,322 04/05/21 19/08/22 ....
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....s and Services Tax Act, 2017 (for short 'IGST Act') and the Rules made thereunder apply mutatis mutandis to the levy and collection of cess on inter-State supplies of goods or services. The proviso thereto states that the cess on supply of goods or services shall be utilized only towards payment of cess on supply of goods or services leviable under this Section as such the cess paid on inputs can be utilized only for claiming credit for cess on supplies payable, if any, and not as a credit for any other tax including CGST or IGST. Section 9 of the Cess Act provides for furnishing of returns in respect of taxable supply of goods or services or both upon payment of cess in forms prescribed. It also provides for application for refund of such cess in such form as may be prescribed. In terms of Sections 9 and 11 of the Cess Act read with Section 16 of the IGST Act, direct export of goods and supplies made to SEZ units would qualify to be zero rated supplies under the Cess Act also. Therefore, the provisions relating to zero rated supplies would apply to export of goods and supplies made to SEZ units under the Cess Act also. As per the petitioner, in terms of Section 16(3) of the IGS....
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.... to why such refund should not be rejected. It indicated that under Section 54(3) of the CGST Act, only refund of input tax without payment of IGST is permissible but the petitioner is seeking refund of unutilized Input Tax Credit of cess on payment of IGST. According to the petitioner, the show cause notice also noted that refund of accumulated Input Tax Credit (ITC) of cess on zero rated supplies with payment of tax is nowhere specified under the Act and the Rules. The petitioner submitted its explanation to the prescribed officer against each of the show cause notices issued from time to time. It took a plea that since the refund provisions of the CGST Act apply mutatis mutandis to the Cess Act also, the petitioner's claim for refund is maintainable in terms of Section 54(3) of the CGST Act read with Section 9 of the Cess Act. Since no cess was paid on export of goods, the claim for refund of tax is maintainable. Therefore, the payment of IGST is of no relevance to determine the eligibility for claiming refund of cess. Since the cess was paid on inputs, which have been utilized in export of goods without payment of cess and it is a zero-rated supply in terms of Section 9 of the ....
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....uld mutatis mutandis be applied to cess in terms of which refund of unutilized ITC of cess should be eligible for refund where no cess is paid on export of goods. However, since the respondents failed to appreciate the stand of the petitioner based on the provisions of the 2017 Act and the Rules and the Cess Act, the petitioner was compelled to approach this Court since the appeal remedy under Section 112 of the CGST Act was not available. 6. Counter-affidavit was filed in the lead matter supporting the impugned orders relying upon the same Circular dated 30.05.2018. 7. The relevant paragraph which deals with refund of unutilized input tax credit of compensation cess availed on inputs in cases where the final product is not subject to the levy of compensation cess, in the Circular dated 30.05.2018 is extracted hereunder: "5. Refund of unutilized input tax credit of compensation cess availed on inputs in cases where the final product is not subject to the levy of compensation cess: 5.1 Doubts have been raised whether an exporter is eligible to claim refund of unutilized input tax credit of compensation cess paid on inputs, where the final product is not levia....
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....he benefit of zero rated supplies with payment of tax. Without liability, payment of tax through DRC-03 does not entitle for refund. If the liabililty is discharged in accordance with law, the benefit of refund arises. The CBIC Circular dated 26.07.2017 also speaks the same. It is the case of the respondents that if the coal is exported as it is, then payment of tax under Cess Act, it is eligible for refund. Therefore, the impugned orders passed by the original and appellate authorities are proper. 9. The matters have been taken up today. However, at the outset, learned counsel for the respondent State, on instructions, submits that the position in law has been clarified by the Division Bench judgment of Gujarat High Court in the case of Atul Limited and another v. Union of India and others [2025 (7) TMI 1768]. The Gujarat High Court in the case of refund of unutilized ITC as against zero-rated supply of compensation cess paid, held that the petitioner in such cases can claim refund of the cess paid on purchase of coal used for manufacturing of goods exported being zero-rated supplies. The petitioner may have paid the IGST on the goods exported by it, but it was not required to ....