LI
Published on: March 6, 2022 at 16:50 IST
The Division Bench of Justice J. B Pardiwala and Justice Nisha M.Thakore of the Gujrat High Court held that, Input Tax Credit (ITC) received from an Input Service Distributor (ISD) which was Lying Unutilized in the Electronic Credit Ledger is Liable to be Refunded.
The Respondent was ordered to Process the Claim for a Refund made by the Writ Petitioner for the Unutilized Integrated Goods and Services Tax (IGST) Credit lying in the Electronic Credit Ledger under Section 54 of the Central Goods and Services Tax (CGST) Act 2017 by The Division Bench.
The Writ Petitioner is a Pharmaceutical Company operating as a Special Economic Zone (SEZ) Unit which is involved in the Export of Goods under the Letter of Undertaking (LUT). Input Tax Credit (ITC) of about Rs. 2166887/- was accumulated by the Writ Petitioner in the Year 2017-2018.
The aforementioned Input Tax Credit (ITC) of the integrated Tax was received by the Writ Petitioner from its Input Service Distributor (ISD) and Input Tax Credit (ITC) inward supply charged by the Supplier as is Legally Permissible.
The Writ Petitioner contended that, being a Special Economic Zone (SEZ) Unit which makes Zero Rated Supplies under GST, the Credit was not Utilized by the Writ Petitioner and was Lying Unutilized in the Electronic Credit Ledger.
It was Held by the Court that since there is no Specific Supplier who can Claim the Refund under the Provisions of the Central Goods and Services Tax (CGST) Act and the Central Goods and Services Tax (CGST), Rules as the Input Tax Credit (ITC) is distributed by the input Service Distributor, the Writ Petitioner was entitled to Claim the Refund of Integrated Goods and Services Tax (IGST) Lying in the Electronic Credit Ledger.
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