Appellate Authority Can’t Deny GST Refund Based on Conflicting Circular: Rajasthan HC

MO Industries Vs Union of India (Rajasthan High Court) Summary: The Rajasthan High Court, in M/s MO Industries v. Union of India, ruled that an Appellate Authority cannot quash a refund order based solely on a circular that conflicts with the Central Goods and Services Tax (CGST) Act. The petitioner, M/s MO Industries, sought a refund of ₹19,62,616 on accumulated Input Tax Credit (ITC) due to an inverted tax structure. While the refund was initially granted, it was later quashed on appeal, relying on Circular No. 135/05/2020-GST, which had previously been declared repugnant to Section 54(3)(...