Case Law Details
Union of India & Ors. Vs VKC Footsteps India Pvt Ltd. (Supreme Court)
The Apex Court Sets aside the order of Gujarat HC and upheld the order of Madras HC. Although the Hon’ble Court has noted some anomalies and suggested the GST Council to look into the same.
Background:
The Division Bench of the Gujarat High Court having examined the provisions of Section 54(3) and Rule 89(5) held that the latter was ultra vires. In its decision in VKC Footsteps India Pvt. Ltd. Vs. Union of India (supra), the Gujarat High Court held that by prescribing a formula in sub-Rule (5) of Rule 89 of the CGST Rules to execute refund of unutilized ITC accumulated on account of input services, the delegate of the legislature had acted contrary to the provisions of sub-Section (3) of Section 54 of the CGST Act which provides for a claim of refund of any unutilized ITC. The Gujarat High Court noted the definition of ITC in Section 2(62) and held that Rule 89(5) by restricting the refund only to input goods had acted ultra vires Section 54(3).
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Author Bio
Sir,
What is your opinion on Erection & Commissioning work undertaken for Electrification Work of Rail;ways, Whether Refund of GST on Goods allwed under Inverted Duty Structrure.
CA Om Praklash Jain s/o J.K.Jain, Jaipur
Tel:8414300730.