Tirth Agro Technology Pvt. Ltd. & Anr. Vs Union Of India & Ors. (Gujarat High Court)
The Hon’ble Gujarat High Court in the case of Tirth Agro Technology Pvt. Ltd. & Anr. v. Union of India & Ors. [R/Special Civil Application No. 11649 of 2023 dated December 20, 2024] allowed the writ petitions seeking GST refund under Inverted Duty Structure (“IDS”) based on Section 54(3) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) read with Rule 89(5) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”). The Assessee filed a rectification application for differential refund as per the amended formula which was rejected by issuance of Show Cause Notice (“SCN”) on the ground that refund as per the old formula was already granted to the Assessee; Assessee were granted partial refund under IDS on the ground that prior to July 05, 2022, in terms of unamended formula, assessee were not entitled to include input services as part of the formula and so they were not entitled to refund as per the Notification No. 14/2022 dated July 05, 2022 (“the Notification”) read with Circular 181/13/2022-GST dated November 10, 2022 (“the Circular”). The Court held that the Notification cannot be applied prospectively for the refund claim which were made within two years as prescribed in Section 54(1) of the CGST Act. The Court thus, directed to release differential refund amounts as per rectification application.
