Ultra Tech Cement Ltd. Vs Union of India & Others (Himachal Pradesh High Court)
n the case of Ultra Tech Cement Ltd. vs. Union of India & Others (Himachal Pradesh High Court), the petitioner, Ultra Tech Cement Ltd., engaged in cement manufacturing under Chapter 25 of the GST Tariff, operates two units in Himachal Pradesh: one in Village Baga and another in Village Pandiyana (Tikri), also known as Bagheri. Both units, along with their marketing office, are registered under the same GSTIN.
The dispute arose following the implementation of the GST regime from July 1, 2017. Prior to GST, units in Himachal Pradesh enjoyed Central Excise Duty exemptions under area-based schemes. To mitigate the impact of GST on such units, the Central Government introduced a “Scheme of Budgetary Support” via a notification dated October 5, 2017. This scheme aimed to reimburse GST paid by eligible units in certain regions, including Himachal Pradesh.
Ultra Tech Cement Ltd. applied for budgetary support under this scheme for its Bagheri unit, seeking reimbursement for GST paid from July 1, 2017, to September 30, 2017. Despite having a credit balance in their GST account, Ultra Tech Cement argued that this balance related to its non-eligible Baga unit, not the Bagheri unit. The Deputy Commissioner of CGST rejected Ultra Tech’s claim, citing the credit balance in their GST account as grounds for denial.
