Case Law Details
Indian Oil Corporation Limited Vs Commissioner of Central Goods And Services Tax & Ors. (Delhi High Court)
Delhi High Court held that refund of accumulated Input Tax Credit (ITC) permissible as rate of taxes on certain inputs being higher than tax chargeable on the output supply.
Facts-
The petitioner has filed the present petition being aggrieved by denial of claims for the refund of accumulated Input Tax Credit. The same was denied to the petitioner on the ground that the rate of tax on input supply and output supply are the same. According to the Revenue, the refund is not permissible in view of Clause (ii) of the proviso to Section 54(3) of the Central Goods & Service Tax Act, 2017.
The petitioner states that it accumulates unutilized ITC on account of rate of tax on certain inputs being higher than the rate of tax, chargeable on bottled Liquid Petroleum Gas – the petitioner’s output supply. Thus, according to the petitioner, refund of unutilized ITC is not proscribed in terms of the proviso to Section 54(3) of the CGST Act.
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