Section 54 of the CGST Act — Refund — The appellant filed a refund claim under Section 54 of the Act on account of ITC accumulated due to inverted tax structure. The sanctioning authority rejected the refund claim. Being aggrieved, the appellant filed the instant appeal against the impugned order. The authority observed that as per Circular dated 24-8-2018, independent textile processors (job workers) are eligible for refund of unutilized ITC account of inverted duty structure even if goods supplied to them are covered under Notification No.5/2017-CT (Rate) dated 28-6-2017. Since job workers are kept out of view of Notification No.5/2017, apparently, the requirement to lapse credit in terms of Notification No.20/2018 read with CBIC Circular No.56/30/2018 dated 24-8-2018 is also not applicable for job workers Hence the impugned order rejecting refund on the ground of non submission of lapse credit is legally untenable and unsustainable on merit.

Held that:- The Hon’ble authority allowed appeal, restoring their entitlement for refund subject to verification of all outward supply of invoices issued during the claim period.