ADM Agro Industries India (P) Ltd. v. UOI & Ors.

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The Tax Publishers 2024 TaxPub(GST) 859 (Guj-HC) IN THE GUJARAT HIGH COURT BHARGAV D. KARIA & NIRAL R. MEHTA JJ. ADM Agro Industries India (P) Ltd. v. UOI & Ors. R/Special Civil Application No. 1479 of 2022 with R/Special Civil Application No. 10762 of 2020 with R/Special Civil Application No. 11121 of 2020 with R/Special Civil Application No. 14960 of 2019 27 March, 2024 APPEARANCE IN SCA NO. 1479 OF 2022: For the Petitioner(s) No. 1 : Mr Anand Nainawati(5970) For the Respondent(s) No. 1,2,3,4,5,6,7 : Mr Chirayu A Mehta(3256) APPEARANCE IN SCA NO. 10762 OF 2020: For the Petitioner(s) No. 1 : Mr Anand Nainawati(5970) For the Respondent(s) No. 2 5, 6 : Mr Nikunt K Raval For the Respondent(s) No. 1 : Mr Ankit Shah APPEARANCE IN SCA NO. 11121 OF 2020: For the Petitioner(s) No. 1: Mr Anand Nainawati (5970) For the Respondent(s) No. 1, 2 4, 5 : MR PY Divyeshvar (3256) For the Respondent(s) No. 3 6, 7 : Notice Unserved APPEARANCE IN SCA NO. 14960 OF 2019: For the Petitioner(s) No. 1 : Mr Anand Nainawati(5970) For the Respondent(s) No. 2 5, 6 : Mr PY Divyeshvar (3256) For the Respondent(s) No. 1 : Notice Served By DS ORDER *Bhargav D. Karia* In all these petitions, the petitioner has prayed for granting refund of accumulated input tax credit in terms of Section 54(3)(ii) of the Central Goods & Service Tax Act, 2017 (for short the CGST Act) read with Rule 89(5) of the Central Goods & Service Tax Rules, 2017 (for short the CGST Rules) for the period from July, 2017 to November, 2020. 2. The brief facts of the case, in general, are that the petitioner has availed input tax credit of GST paid on the procurement of input services and capital goods supply subject to the restrictions provided in 17(5) of the CGST Act. 2.1 It is the case of the petitioner that procurement of raw material, consumables and packing materials attracts GST from 5% to 28% and output supply of the goods attracts the GST rate at 5% only. Therefore, the petitioner has huge accumulation of input tax credit on account of the inverted tax structure. The petitioner accordingly made a claim of refund as per the provisions of section 54(3)(ii) of the CGST Act read with Rule 89(5) of the CGST Rules for the period in each of the petition which is tabulated as under. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2024 TaxPub(GST) 859 (Guj-HC)

IN THE GUJARAT HIGH COURT

BHARGAV D. KARIA & NIRAL R. MEHTA JJ.

ADM Agro Industries India (P) Ltd. v. UOI & Ors.

R/Special Civil Application No. 1479 of 2022 with R/Special Civil Application No. 10762 of 2020 with R/Special Civil Application No. 11121 of 2020 with R/Special Civil Application No. 14960 of 2019

27 March, 2024

APPEARANCE IN SCA NO. 1479 OF 2022:

For the Petitioner(s) No. 1 : Mr Anand Nainawati(5970)

For the Respondent(s) No. 1,2,3,4,5,6,7 : Mr Chirayu A Mehta(3256)

APPEARANCE IN SCA NO. 10762 OF 2020:

For the Petitioner(s) No. 1 : Mr Anand Nainawati(5970)

For the Respondent(s) No. 2 5, 6 : Mr Nikunt K Raval

For the Respondent(s) No. 1 : Mr Ankit Shah

APPEARANCE IN SCA NO. 11121 OF 2020:

For the Petitioner(s) No. 1: Mr Anand Nainawati (5970)

For the Respondent(s) No. 1, 2 4, 5 : MR PY Divyeshvar (3256)

For the Respondent(s) No. 3 6, 7 : Notice Unserved

APPEARANCE IN SCA NO. 14960 OF 2019:

For the Petitioner(s) No. 1 : Mr Anand Nainawati(5970)

For the Respondent(s) No. 2 5, 6 : Mr PY Divyeshvar (3256)

For the Respondent(s) No. 1 : Notice Served By DS

ORDER

Bhargav D. Karia

In all these petitions, the petitioner has prayed for granting refund of accumulated input tax credit in terms of Section 54(3)(ii) of the Central Goods & Service Tax Act, 2017 (for short the CGST Act) read with Rule 89(5) of the Central Goods & Service Tax Rules, 2017 (for short the CGST Rules) for the period from July, 2017 to November, 2020.

2. The brief facts of the case, in general, are that the petitioner has availed input tax credit of GST paid on the procurement of input services and capital goods supply subject to the restrictions provided in 17(5) of the CGST Act.

2.1 It is the case of the petitioner that procurement of raw material, consumables and packing materials attracts GST from 5% to 28% and output supply of the goods attracts the GST rate at 5% only. Therefore, the petitioner has huge accumulation of input tax credit on account of the inverted tax structure. The petitioner accordingly made a claim of refund as per the provisions of section 54(3)(ii) of the CGST Act read with Rule 89(5) of the CGST Rules for the period in each of the petition which is tabulated as under.