The Supreme Court comprising Justice J.B. Pardiwala and Justice K.V. Viswanathan has dismissed SLP filed by revenue on eligibility of SEZ to claim refund of accumulated unutilised ITC considering the peculiar facts & circumstances of the case and the amount which has been ordered to be refunded. However, it keeps the question of law open.
The High Court relied on its decision rendered in the case of “Britannia Industries Limited vs. Union of India” reported in 2020 (42) G.S.T.L. 3 (Guj) accepted the arguments canvassed on behalf of the respondent-assessee, Messrs Meghmani Organochem Limited that an SEZ Unit is entitled in law to claim the refund of unutilised ITC accumulated under Rule 89 of CGST Rules on the ground that exports are made without payment of tax under LUT.
The department submitted that Britannia Industries Limited was challenged before the Apex Court, however, the challenge failed on the ground of low tax effect. It is only the supplier who could have preferred the application claiming a refund of the unutilised ITC accumulated under Rule 89 of the CGST Rules and not the SEZ Unit.
The court refused to interfere with the order and dismissed the SLP.
Case Details
Case Title: UOI Versus Messrs Meghmani Organochem Limited
Case No.: Special Leave to Appeal (C) No.1239/2025
Date: 22-09-2025
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