9911796707
TMI Blog2025 (2) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... COMMON ORDER: As all the four Writ Petitions relate to the same issues, they are being disposed of, by way of a common order. 2. The petitioners are engaged in the business of manufacturing, distributing and branding of edible oils and specialty fats in India. In the process of the manufacture of these products, the petitioners had sourced various raw materials on which GST had already been paid. It so transpired that the rate of GST payable on edible oils and specialty fats was lower than the rate of tax levied on the inputs or raw materials sourced by the petitioner. 3. Section 5 (3) of the CGST Act provides for a situation where the input tax credit available in the ledger of a registered person can be refunded, if the rate of tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20.01.2023 August, 2021 Deficiency Memo dated 02.02.2023 Rs. 3,33,538/- AA370123030361V dated 20.01.2023 September, 2021 Deficiency Memo dated 02.02.2023 Rs. 1,21,419/- AA370123030387H dated 20.01.2023 October, 2021 Deficiency Memo dated 02.02.2023 Rs. 4,86,540/- AA370123030413U dated 20.01.2023 November, 2021 Deficiency Memo dated 02.02.2023 Rs. 6,22,609/- AA370123030436M dated 20.01.2023 December, 2021 Deficiency Memo dated 02.02.2023 Rs. 4,43,280/- AA370123030471S dated 20.01.2023 January, 2022 Deficiency Memo dated 02.02.2023 Rs. 4,09,289/- AA370123030528H dated 20.01.2023 February, 2022 Deficiency Memo dated 02.02. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. One such notification issued by the Central Government is Notification No. 5/2017-Central Tax (Rate) dated 28.06.2017. Subsequently, another Notification bearing No. 9/22-Central Tax (Rate), dated 13.07.2022 was issued. In this notification dated 13.07.2022, the Government included various types of edible oils and specialty fats. By such inclusion, the manufacturers/sellers of such products become ineligible for grant of refund, under Section 54 of the CGST Act. 7. It is the admitted case of the petitioners that the petitioners had become ineligible for grant of refund, under Section 54 of the CGST Act, from 18.07.2022 onwards, on account of the circular interpreting the notification in a particular manner. Aggrieved by the said notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e), dated 13.07.2022 had placed any such bar on a claim for refund. They would submit that a plain reading of these two notifications had made the dealers of such products, ineligible to claim refund, in relation to any input tax credit which arises after 18.07.2022. They would submit that the notification does not in any manner bar an application being filed after 18.07.2022 for periods before 18.07.2022. 12. Sri B.V.S. Chalapathi Rao, learned counsel for the respondents would contend that as per Section 54 of the CGST Act, the petitioner would have to make an application within two years and as the said applications have not been made within two years, no claim can be raised. Smt. Santhi Chandra, learned counsel for the respondent in W.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council: Provided further that no refund of unutilized input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty: Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies. 15. As per sub-section (3) of Section 54, any registered person who is supplying any kind of goods would be entitled for refund of input tax credit once ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the said clarification is neither logical nor in accordance with the understanding of law in such cases. 19. This Court would hold that once a stipulation is made that the notification, in question, operates from 18.07.2022, it would mean that any input tax credit which arose on account of the mismatch between the input tax and the output tax, prior to 18.07.2022, can always be recovered by the registered person, by making an application under Section 54 of the CGST Act. 20. In the circumstances, we are of the opinion that Circular No. 181/13/2022-GST, dated 10.11.2022, would have to be struck down, to the extent of the clarification that the restriction imposed by the Notification, dated 13.07.2022, would be applicable in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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