GST
TRT-2025-
Supreme court of India
Date:-18-07-25
In:-
Issue Favourable to Tax Payer ?:-
Order date: 18 Jul 2025
Parties: Union of India & Ors. v. M/s Tirth Agro Technology Pvt. Ltd. & Ors.
Facts -
- The Union of India challenged Gujarat High Court orders in multiple Special Civil Applications granting GST refund relief of input services under inverted duty structure to the respondents, relying on the HC’s earlier decision in Ascent Meditech Ltd. v. Union of India (17.10.2024).
- That earlier decision had already been challenged before the Supreme Court in SLP (C) No. 8134 of 2025 and was dismissed on 28.03.2025. The present SLP, filed in June 2025, did not disclose this fact.
Issue -
- Whether the amended Rule 89(5) formula permitting inclusion of ITC on input services in refund computation applies to claims filed before 05.07.2022?
Order -
- The Supreme Court relied on the high courts reasoning which followed its earlier Ascent Meditech Ltd. judgment, noting that the impugned circular is therefore contrary to the provisions of the Act as it cannot be said that the refund applications filed after 05.07.2022 would only be entitled to the benefit of the amended Rule 89(5) of the Act.
- As per the provisions of section 54(1) read with section 54(3) of the Act if the assessee has made refund application within the prescribed period of two years, then the assessee would be entitled to the refund as per the amended formula which has been notified w.e.f. 05.07.2022.
- Given this precedent and the factual similarity, the Court found no ground for interference and dismissed the present SLP, thereby affirming the HC’s decision.
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