Denial of refund claim of accumulated ITC merely due to incorrect classification of goods by supplier unjustified

Simran Chandwani Vs Principal Commissioner of CGST, Delhi North And Ors. (Delhi High Court) Delhi High Court held that denial of refund claim of accumulated Input Tax Credit (ITC) due to inverted duty structure merely because of incorrect classification of goods by the supplier is unjustified and unsustainable in law. Facts- The petitioner is engaged in the business of selling footwear which is chargeable to goods and services tax at the rate of 5% or 12%, depending on whether the price of the footwear is below Rs. 1,000/- or above Rs. 1,000/-. One of the components used in manufacturing of fo...