2026 (7) TMI 633

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....be pleased to declare that the definition of 'Net ITC' retrospectively introduced in Rule89(5) of the GST Rules thereby restricting refund only to "inputs" and not "input services is ultra-vires Section 54(3) of the GST Acts as well as the legislative scheme and policy of the GST Acts; (B) This Hon'ble Court may be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other appropriate writ or order quashing and setting aside the deficiency memo in Form GST RFD-03 for the years 2017-18 and 2018-19 (annexed at Annexure-B) issued by the 3rd Respondent authority. (C) This Hon'ble Court may be pleased to issue a writ of mandamus or writ in nature of mandamus or any other appropriate writ or order directi....

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....sed by Mr Natarjan and Mr. Sridharan by prescribing an order of utilisation would take this Court down the path of recrafting the formula and walk into the shoes of the executive or the legislature, which is impermissible. Accordingly, we shall refrain from replacing the wisdom of the legislature or its delegate with our own in such a case. However, given the anomalies pointed out by the assessees, we strongly urge the GST Council to reconsider the formula and take a policy decision regarding the same. 143. Having devoted our attention to the submissions at the Bar, we have come to the conclusion that the judgment of the Madras High Court needs to be affirmed by dismissing the appeals challenging that verdict while the appeals agai....

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.... accordingly vide Notification No. 14/2022- Central Tax dated 05.07.2022, has subsequently amended the provision of Rule 89 of the CGST Rules had introduced Clause(d) in sub-rule (5) which reads thus : "(d) in sub-rule (5), for words "tax payable on such inverted rated supply of goods and services", the brackets, words and letters "{tax payable on such inverted rated supply of goods and services X (Net ITC / ITC availed on inputs and input services)}." shall be substituted;" 4. Thereafter, it appears that the issue with regard to the applicability of the provision of amended sub-rule 5 of Clause (d) of Rule 89 of the CGST Rules, arose and the same was the subject matter of challenge before this Court in Special Civil Application....