Input Tax Credit eligibility clarified: refund for unutilised ITC limited to inverted duty where input goods tax exceeds output supplies.
The court construes Section 54(3) narrowly: refund of unutilised ITC for inverted duty arises only where tax on input goods exceeds tax on output supplies. It upholds the constitutional validity of Section 16(2)(c) and Section 16(4), confirms that ITC is subject to legislatively prescribed conditions and time limits, and clarifies that the non-obstante clause in Section 16(2) does not override separate restrictions such as Section 16(4). Affected petitioners may invoke circulars and have eligible ITC claims processed where returns met the prescribed extended filing position.