Atul Limited & Anr Vs Assistant Commissioner (Gujarat High Court)
Gujarat High Court held that the refund of unutilised Input Tax Credit of Compensation Cess is admissible even if the goods are exported on payment of Integrated Goods and Services Tax [IGST]. Accordingly, the present petition is allowed and refund is granted.
Facts- The petitioner no.1 company is engaged in the manufacture and sale of various chemical products including the supply of the said products to SEZ units as well as exports outside India. The petitioner is registered under the provisions of the Central/State Gods and Service Tax Act, 2017 in the State of Gujarat. In order to manufacture the finished products, the petitioner requires power in the form of electricity. Therefore, in October, 2020 the petitioner purchased coal from the market to generate its own captive power via the captive power plant for use in the manufacturing activity. It is the case of the petitioner that section 8 of the Goods and Service Tax (Compensation to States) Act, 2017 provides for levy of Cess on the supply of coal at the rate of Rs.400/- per ton and therefore, the vendors supplying the coal to the petitioner charged the said levy and collected the Cess from the petitioner.
