High Court of Madras
Vindhya Spinning Mills (P.) Ltd. v. Assistant Commissioner of CGST and Central Excise
For assessee
W.P.(MD) NOS. 16757 & 16758 OF 2025
The ruling in brief
Where assessee manufacturing combed cotton yarn used certain inputs taxable at higher rates than output and claimed refund of accumulated ITC under inverted duty structure, rejection of refund on ground that principal input matched output rate was improper since statute allows refund if any input attracts higher GST, circular restricting such refund was unconstitutional and refund with interest was directed
Provisions considered
Section 54, read with section 168, of Central Goods and Services Tax Act, 2017/Tamil Nadu Goods and Services Tax Act, 2017 - Rule 89 of Central Goods and Services Tax Rules, 2017/Tamil Nadu Goods and Services Tax Rules, 2017