- The Delhi High Court ruled that the petitioner is entitled to a refund of accumulated Input Tax Credit (ITC) due to different tax rates on inward supplies.
- The court stated that the refund cannot be denied based on a circular that stated refunds were not available when input and output supplies were the same.
- The petitioner, Indian Oil Corporation Limited, applied for refunds of accumulated ITC but they were not processed and were rejected by the Revenue Department.
- The petitioner filed a writ petition in the Delhi High Court, arguing that the denial of the refund was based on the grounds that the tax rates on input and output supplies were the same.
- The court held that the refund of accumulated ITC is admissible when there are different tax rates on inward supplies charged at different points in time.
- The court clarified that the provision of the CGST Act regarding ITC accumulation only applies when the rate of tax on inputs is higher than the rate of tax on output supplies.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
