J&K Cement Corporation through Mr. Sandeep Mittal Vs Union of India (Jammu & Kashmir And Ladakh High Court)
Rejection of a partial refund under the Budgetary Support Scheme without assigning any reasons is invalid in law
The Hon’ble Jammu & Kashmir and Ladakh High Court at Jammu in J & K Cement Corporation v. Union of India [WP(C) No. 2188 of 2022, dated April 04, 2025] held that the rejection of a partial refund claim under the Budgetary Support Scheme (“the Scheme”) without assigning any reason was unjustified. Further, the Court held that the Petitioner was eligible under the Notification No.F.No.10(1)2017-DBA-II/NER dated November 05, 2017 (“the Notification”) and had correctly calculated the refund based on 58% of Central Goods & Services Tax (“CGST”)/State Goods & Services Tax (“SGST”) and 29% of Integrated Goods & Services (“IGST”) paid on the inter-state supplies.
Facts:
M/s. J&K Cement Corporation (“the Petitioner”) is an industrial unit engaged in the manufacturing and supply of cement across the country. The Petitioner was availing the benefit of excise duty refund under Notification No. 1/2010-C.E. dated February 06, 2010 before the introduction of the Central Goods and Services Tax, Act 2017 (“the CGST Act”). Post, CGST Act, the Petitioner became eligible for benefits under the Scheme.
The Petitioner filed refund claims under the Scheme for the periods July–September 2021 and January–March 2022. While the claim for July–September 2021 was allowed, the refund for January–March 2022 was partially rejected by the Deputy Commissioner (“the Respondent”) by passing Refund Order (“the Impugned Order”) without any justification.
The Petitioner contended that they were the eligible unit to take the benefit of budgetary scheme and filed refund claims for the said quarter based on the Scheme and the Notification which allows 58% of the CGST/CGST and 29% of the IGST paid in cash after utilizing Input Tax Credit (“ITC”).
Hence, aggrieved by the Impugned Order, the Petitioner filed the present Writ Petition.
Issue:
Whether the rejection of a partial refund under the Scheme without assigning any reasons is valid in law?
Held:
The Hon’ble Jammu & Kashmir and Ladakh High Court in WP(C) No. 2188 of 2022 held as under:
