Svera Agro Limited Vs Commissioner of Central Tax And GST ( Delhi High Court)
The Hon’ble Delhi High Court in M/s. Svera Agro Ltd. v. Commissioner of Central Tax [W.P. (C) No. 11926 of 2023 dated February 29, 2024], quashed the deficiency memo requiring the assessee to furnish CA certificate for seeking refund of unutilized ITC, since proviso to Rule 89(2)(m) waive the requirements of furnishing CA certificate in case refund is sought for unutilized ITC.
Facts:
M/s. Svera Agro Ltd. (“the Petitioner”), filed a refund application for claiming refund of unutilized ITC, which was rejected by the Revenue Department by issuing deficiency memos requiring the Petitioner to furnish a certificate issued by the CA as per Rule 89 (2)(m) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”).
Aggrieved by the deficiency memo the Petitioner filed writ Petition before the Hon’ble Delhi High Court.
The Petitioner contended that, the refund sought by the Petitioner is of unutilized ITC, which is covered under Section 54(3) of the CGST Act. In such case, the law does not mandates the applicant to furnish CA certificate.
Issue:
Whether a CA certificate is required in case of refund of unutilized Input tax credit?
