Restriction of IDS Refund on Edible Oils can't be applied retrospectively for past period

Last updated: 02 May 2026

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The High Court of Jammu & Kashmir and Ladakh has ruled that an amendment to the CGST Act regarding the 'relevant date' for claiming refunds on unutilised Input Tax Credit (ITC) due to an inverted duty structure cannot be applied retrospectively. This means that changes made in February 2019, which altered how the claim period is calculated, do not affect refunds for periods prior to that amendment. The court affirmed that vested rights accrued before the amendment cannot be taken away by subsequent legislative changes unless explicitly stated.

Court :
High Court of Jammu & Kashmir and Ladakh at Jammu

Brief :
The Hon’ble High Court of Jammu & Kashmir and Ladakh at Jammu in the case of Bharat Oil Traders v. Assistant Commissioner &Anr. [WP(C) No. 192/2023, order dated January 2, 2026] held that amendment to Explanation (2)(e) Section 54 CGST Act, 2017 w.e.f. February 1, 2019 substituting "relevant date" for unutilized ITC refund u/s 54(3)(ii) inverted duty structure from "end of financial year in which claim arises" to "due date for furnishing return u/s 39 for period claim arises" operates prospectively and cannot retrospectively divest vested rights accrued pre-amendment.

Citation :
WP(C) No. 192/2023, order dated January 2, 2026]

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

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3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Attached File : 671907_5976_bharat_oil_traders.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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