Gauhati HC ruling on refund of accumulated ITC in case of inverted duty

BMG Informatics Pvt Ltd Vs Union of India (Gauhati High Court)

In an important decision given by Justice A.M Bujor Barua of the Gauhati High Court in the case of W.P (C) 3880/2021 3878/2021 3675/2021 4120/2021 (BMG Informatics Pvt. Ltd. vs. Union of India) the Court as held that the circular no. CBEC-20/01/06/2019-GST dated 31.03.2020 issued by the Ministry of Finance, Department of Revenue, Government of India whereby it was held that the refund of accumulated ITC under clause (ii) of sub section (3) of section 54 of the CGST Act would not be applicable in cases where input and output supplies are same was in clear conflict with the provisions of section 54 of the Act and thereby same has to be ignored. Court has held that the refund of inverted duty shall be available when the duty on inward supply is higher than on outward supply and while determining the rate of duty on outward supply the partial exemption granted under section 11 of the Act has to be taken into consideration. Arguing counsel was Sr. Advocate Dr.Ashok Saraf, Guwahati for the petitioners.

FULL TEXT OF THE JUDGMENT/ORDER OF GAUHATI HIGH COURT

Heard Dr. A Saraf, learned senior counsel for the petitioner in WP(C)No.3878/2021 & WP(C)No.3880/2021. Also heard Mr. SC Keyal, learned counsel for the petitioners in WP(C)No.3675/2021 and WP(C)4120/2021.

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