Ambuja Cement Limited Vs Union of India (Allahabad High Court)
The petitioner, a registered cement manufacturer, challenged orders dated 31 August 2024 and 4 August 2023 before the Allahabad High Court, rejecting its GST refund claim under Section 54 of the CGST Act. The petitioner had entered into an Engineering, Procurement, and Construction (EPC) contract with M/s Howe Engineering Projects India Pvt. Ltd. (HEPIPL) for debottlenecking work at its Dadri Plant in Uttar Pradesh. Invoices dated 28 and 29 November 2022 were raised, and GST at 18% was paid.
Due to internal and external factors affecting the project, the petitioner notified HEPIPL of substantial changes in scope, which would impact timelines and budget. HEPIPL indicated it could not complete the expanded work and requested renegotiation. Both parties subsequently agreed to annul the contract, formalized through a memorandum of settlement dated 3 March 2023 and a termination letter dated 8 March 2023. The petitioner had already paid GST before the contract cancellation.
Following annulment, the petitioner filed an application under Section 54 for GST refund. A show-cause notice was issued, and the petitioner submitted a detailed reply. However, the application was rejected through the impugned order, and a subsequent appeal was dismissed without consideration of the material submitted. The petitioner contended that the rejection was based on technical grounds not contemplated under the Act and Rules.
