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2023 (12) TMI 662 - BOMBAY HIGH COURTRefund of the Input Tax Credit (ITC) - primary ground of challenge as urged on behalf of the petitioner is that the Appellate Authority has erroneously proceeded to apply Circular dated 18 November 2019, which provides that the refund claim filed could not be spread across different financial years - HELD THAT:- There are much substance in the contentions as urged on behalf of the petitioner. It appears to be an admitted position that the petitioner had filed refund application under Section 54 (3) of the CGST Act for the “relevant period” which is defined under Rule 89(4) of the CGST Rules. In the statutory pattern, the electronic ledger is required to be maintained, it was permissible for the petitioner to club the ITC credit available to the petitioner for the prior period. As the credit which was available for the period prior to 1 April 2018 pertained to the financial year 2017-18 the same was certainly available to the petitioner in its electronic ledger in the form of a running account - from the reading of the impugned order, it appears to be quite clear that such aspect of the matter has been overlooked and / or not addressed in so far as to what has been clarified by the department itself, so as to bring the interpretation as held by Circular dated 31 March 2020 to be in consonance with what has been provided by Rule 89(4) of the CGST Rules. It was neither permissible for the Appellate Authority to overlook the Rule as it stands nor disregard the Circular dated 31 March 2020. The appellate authority ought to have recorded a finding on such issue. The order passed by the Appellate Authority cannot be sustained and would be required to be set aside - Petition allowed.
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