Case Law Details
Tvl. Transtonnelstroy Afcons Joint venture Vs Union of India (Madras High Court)
Madras HC pronounces its conclusion on the batch of petitions on inverted duty structure (IDS) and arrived at the following conclusions:
(1) Section 54(3)(ii) does not infringe Article 14.
(2) Refund is a statutory right and the extension of the benefit of refund only to the unutilised credit that accumulates on account of the rate of tax on input goods being higher than the rate of tax on output supplies by excluding unutilised input tax credit that accumulated on account of input services is a valid classification and a valid exercise of legislative power.
(3) Therefore, there is no necessity to adopt the interpretive device of reading down so as to save the constitutionality of Section 54(3)(ii).
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