M K Agrotech Private Limited Vs Union of India (Karnataka High Court)
The petitioner filed the writ petition challenging the order dated 27.04.2023 rejecting its GST refund claim and sought quashing of the order, a direction to grant the refund along with interest, and a declaration that Circular No. 181/13/2022-GST dated 10.11.2022 was ultra vires the CGST/KGST Act, 2017 and the notification dated 13.07.2022.
The petitioner contended that the controversy involved in the petition was directly covered by several judicial decisions, including MK Agro Tech Pvt. Ltd. Vs. Union of India, Indian Oil Corporation Ltd. Vs. Assistant Commissioner of Central Tax, M/s. Priyanka Refineries Pvt. Ltd. and Gemini Edibles and Fats India Ltd. Vs. DCCT and Ors., Patanjali Foods India Vs. Union of India, and Shree Proteins Pvt. Ltd. v. Union of India. It was submitted that these decisions had not been considered by the respondent while rejecting the refund claim.
The Court observed that the impugned order had rejected the refund claim on two grounds: (i) the rate of tax on input and output was the same, and (ii) Notification No. 9/2022 dated 13.07.2022 was retrospective in nature.
The petitioner submitted that the issue relating to the rate of tax on input and output had already been decided in favour of taxpayers in MK Agro Tech Pvt. Ltd. and Indian Oil Corporation Ltd. It was further submitted that the question whether Notification No. 9/2022 dated 13.07.2022 was prospective or retrospective had been decided in favour of the taxpayer in M/s. Priyanka Refineries Pvt. Ltd. and Gemini Edibles and Fats India Ltd., and that decision had been affirmed by the Supreme Court in Assistant Commissioner of Central Taxes and others Vs. M/s. Gemini Edibles and Fats India Limited and another.
