SC Upholds refund based on modified formula of Inverted Duty Structure Refund

Union of India & Ors. Vs Tirth Agro Technology Pvt. Ltd. & Ors. (Supreme Court of India) Summary: The Supreme Court of India has dismissed a Special Leave Petition filed by the Union of India against Tirth Agro Technology Pvt. Ltd., thereby upholding the Gujarat High Court’s decision to grant a refund based on the retrospectively applied amended formula of Rule 89(5) of the CGST Rules. Tirth Agro had sought a refund of differential Input Tax Credit (ITC) under the inverted duty structure. The original formula, which excluded input services, resulted in partial refunds for claims ...