"INVERTED DUTY STRUCTURE REFUND"
CBEC Circulars are usually the reason for refund rejection.
I am sharing a few judgments on this refund, which could be helpful to you.
Research by: Raja Abhishek
NIRC Candidate
9810638155
1. EVEREADY SPINNING MILLS (P) LTD. vs. ASSISTANT COMMISSIONER
Madras High Court
(2024) 7 CTOGST (Mad) 1047
The Assistant Commr. of Central GST & Central Excise, rejected the claim based on CBEC Circular No. 135/05/2020-GST , which had been struck down by various High Court.
The Court therefore set aside the impugned order and remitted the case back to the respondent for reconsideration in light of previous orders sanctioning refunds to the petitioner.
2. VSM Weavess India Pvt. Ltd. vs Assistant Commissioner (ST)
Madras High Court
(2024) 82 GSTL 402
Where assessee's application for refund of unutilized input tax credit due to an inverted duty structure could not be rejected for reasons that refund claimed and
received earlier pertained to zero-rated supplies, and that debit entries for refund claims were not made, since assessee had already submitted necessary documents, matter was to be readjudicated.
3. Tvl. Orange Sorting Machines (India) Pvt. Ltd. vs. Assistant Commissioner
Madras High Court
(2024) 19 Centax 454
HC quashes order as it didn’t provide any particulars beyond stating that excess refund was issued on account of inverted duty.
4. Indian Oil Corporation Ltd. vs Commissioner of CGST
(2023) 157 taxmann com 431
Refund under an inverted duty structure is allowed if the GST rate on the principle input is the same but higher on other inputs.
Thanks for reading. Please share if you find this useful.
ARR