Notice issued regarding refund of unutilized input tax credit (ITC) against export.
Section 54 of the CGST Act, 2017— Refund — The petitioner challenged two instructions dated 8th June and 25th June 2021 issued by the respondent requiring to deal with refund of unutilized ITC against export on the basis that where the export duty is at NIL rate and not exempted. The instruction dated 25th June 2021 further directs that steps should be taken to recover the refund already granted by initiating the proceedings under Section 73 of the OGST/CGST Act, 2017. The petitioner submitted that consequent upon the instructions, the Petitioner has been issued a SCN dated 21st July 2021 under Section 73 of the Act 2017. The counsel for the Petitioner submitted that the impugned notices are entirely without jurisdiction and the understanding that where the export duty payable is NIL, ITC should be denied, is contrary to the legal position explained by the Supreme Court of India in Associated Cement Companies Ltd. v. Commissioner of Customs (2001) 4 SCC 593 (para 82).
Held that:- The Hon’ble High Court issued notice and listed the matter on 16th December, 2021.
Notice issued regarding refund of unutilized input tax credit (ITC) against export.
Section 54 of the CGST Act, 2017— Refund — The petitioner challenged two instructions dated 8th June and 25th June 2021 issued by the respondent requiring to deal with refund of unutilized ITC against export on the basis that where the export duty is at NIL rate and not exempted. The instruction dated 25th June 2021 further directs that steps should be taken to recover the refund already granted by initiating the proceedings under Section 73 of the OGST/CGST Act, 2017. The petitioner submitted that consequent upon the instructions, the Petitioner has been issued a SCN dated 21st July 2021 under Section 73 of the Act 2017. The counsel for the Petitioner submitted that the impugned notices are entirely without jurisdiction and the understanding that where the export duty payable is NIL, ITC should be denied, is contrary to the legal position explained by the Supreme Court of India in Associated Cement Companies Ltd. v. Commissioner of Customs (2001) 4 SCC 593 (para 82).
Held that:- The Hon’ble High Court issued notice and listed the matter on 16th December, 2021.