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The Hon’ble Sikkim High Court in the case of Union of India held that a refund claim for unutilised input tax credit (ITC) filed under the CGST Act due to business closure was not maintainable as Section 49(6) is not an independent refund provision but must be read with Section 54, which restricts refund of unutilised ITC to specified contingencies only, and business closure does not qualify.
The Sikkim high court has ruled that businesses are entitled to a refund of unutilised input tax credit (ITC) even upon the discontinuation or closure of operations.
The Hon’ble Sikkim High Court in SICPA India Private Limited & Anr. held that refund of unutilized ITC can be claimed even in case of closure of business. Further, the Court observed that there is no express prohibition under Section 49(6) read with Sections 54 and 54(3) of the CGST Act restricting such refund. Although Section …
The Hon’ble Sikkim High Court heard the case Delta Corp Limited and Anr. v. Union of India and Ors. [W.P.(C) No. 41 of 2023] on October 20, 2023. The counsel for the Delta Corp Limited and Anr. (“Petitioners”) have challenged,…