Taxpayer entitled to refund under Inverted Duty Structure when tax on input erroneously charged by the Supplier at higher rate

Last updated: 21 December 2023

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Quick Summary

The Madras High Court has ruled that a taxpayer is entitled to a refund under the Inverted Duty Structure, even if the supplier erroneously charged a higher rate of tax on input materials. The court upheld the refund order, stating there was no illegality in the Assistant Commissioner's (Appeals) decision. Consequently, the Revenue Department was directed to issue the refund along with interest.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in The Commercial Tax Officer v. M/s Suzlon Energy Limited and Others, [W.P. No. 10852 & 10855 of 2021 dated November 16, 2023] dismissed the Writ Petition filed by the Department and reaffirmed the order of refund passed by the Assistant Commissioner (Appeals), thereby holding that, the Taxpayer is entitled to refund under Inverted Duty Structure when Input tax is erroneously charged by Supplier at higher rate.

Citation :
W.P. No. 10852 & 10855 of 2021 dated November 16, 2023

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

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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