Case Details: Aurobindo Pharma Ltd. vs. State of Telangana [2025] 181 taxmann.com 704 (Telangana)
Judiciary and Counsel Details
- Aparesh Kumar Singh, CJ.
- G.M. Mohiuddin, J.
Facts of the Case
The petitioner challenged the rejection of its refund claims for accumulated unutilized credit of compensation cess paid on inputs, specifically coal, used in the manufacture of goods for export. The Department of Revenue denied the refund on the ground that the goods manufactured were non-taxable supplies and, therefore, the refund was not admissible. The petitioner submitted that the refund of the accumulated input tax credit of compensation cess should be allowed under the applicable provisions. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the refund of accumulated unutilized credit of compensation cess on inputs used in the manufacture of goods for export is admissible. The Court observed that the goods manufactured were exempt from tax, and the refund provisions under the CGST Act apply mutatis mutandis to the Compensation Cess Act. Consequently, the impugned orders were set aside, and the matter was remanded to the original authority to take a fresh decision in accordance with the Section 54 of the CGST Act/Telangana GST Act.
List of Cases Reviewed
- Patson Papers (P.) Ltd. v. UOI [2025] 174 taxmann.com 6 (Gujarat) (Para 10) followed
List of Cases Referred to
- Patson Papers (P.) Ltd. v. UOI [2025] 174 taxmann.com 6 (Gujarat) (para 9)
- Atul Ltd. v. UOI [2025] 176 taxmann.com 946/101 GSTL 376 (Gujarat) (para 9).
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