1. The Writ Petition seeking refund for the financial year 2021-2022
involve the interpretation of Section 16(3) of the Central Government
Goods and Services Tax, Act, 2017 (CGST Act, 2017) to be read along
with Section 11 of the Goods and Services Tax (Compensation to States)
Act, 2017.
We have heard Mr Prithviraj Chaudhari, the learned Counsel for
the Petitioner and Ms Asha Desai, learned Standing Counsel
representing the Respondent Authorities.
By consent of parties, we deem it appropriate to issue Rule which
is made returnable forthwith.
2. The Petitioner, a private limited Company, is a manufacturer of
Kraft Paper and is registered under the regime of the Goods and Services
Tax Act, 2017. In the manufacturing process, the Petitioner uses raw
material which include coal, which is used in boiler for generation of
steam, on which the compensation cess is paid to the supplier in terms
of the provisions of the Goods and Services Tax (Compensation to
States) Act, 2017 while selling the product under export. The Petitioner
is making export on payment of IGST @ 12% while utilizing the Input
Tax Credit corresponding to compensation cess payment of CGST,
IGST, SGST on the raw material.
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