GST Refund Orders Quashed as AO Ignored Clarificatory Amendment to Rule 89(5)

Messrs Filatex India Ltd. & Anr. Vs Union of India & Ors. (Gujarat High Court) The Gujarat High Court allowed the writ petition filed by the petitioner company challenging orders denying full refund of accumulated Input Tax Credit (ITC) arising from an inverted duty structure under Rule 89(5) of the CGST Rules. The petitioner, engaged in manufacturing and supplying yarn, procured inputs such as Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG), which attracted GST at 18%, while the final product, yarn, was taxed at 12%, resulting in accumulation of unutilized ITC. Refund ...