SICPA INDIA PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The Assistant Commissioner, Central Goods and Services Tax (CGST) and Central Excise, Gangtok Division, Gangtok, Sikkim, vide Order dtd. 8/2/2022, rejected the refund application filed by the Petitioners, claiming unutilized Input Tax Credit (ITC), lying in Electronic Credit Ledger amounting to Rs.4,37,61,402.00 (Rupees four crores, thirty seven lakhs, sixty one thousand, four hundred and two) only, upon discontinuance of business.

(2.) The Appellate Authority, vide Order dtd. 22/3/2023, upheld the Order dtd. 8/2/2022, of the Assistant Commissioner (supra). It was reasoned that on a combined reading of Ss. 54(3) and 29 of the Central Goods and Services Tax Act, 2017 (hereinafter, the 'CGST Act'), it is evident that the current regulations do not provide for refund of unutilized ITC in case of discontinuation or closure of business. That, it is evidently clear from the provisions mandated in Sec. 54(3) of the CGST Act which is restricted to circumstances under which the unutilized ITC is allowed for refund, discontinuation/closure is not one of them.

(3.) In the instant Petition, the prayers put forth inter alia are to quash, delete and set aside the impugned Order dtd. 22/3/2023, passed by the Respondent No.3 rejecting the claim for refund of unutilized ITC, on closure of its business. Further, to order that, proviso to Sec. 54(3) of the CGST Act is not applicable in respect of refund of unutilized balance of ITC under Sec. 49(6) of the CGST Act.