No refund of Input Services under Inverted Duty Structure?<\/p>\n\n\n\n
Yet another blow to already ailing Textile Industry.<\/p>\n\n\n\n
Madras HC recently on 21.09.2020 in a batch of writ petitions ruled in favor of the revenue.<\/p>\n\n\n\n
The petitioners prayed for reading down the provisions of Rule 89(5) along with Clasue (ii) of proviso to sec 54(3).<\/p>\n\n\n\n
However, the court ruled that from the time immemorial the Goods and services are being treated distinctively in the laws.<\/p>\n\n\n\n
While there has been a legislative trend towards a more uniform treatment as between goods and services, the distinction has certainly not been obliterated<\/p>\n\n\n\n
Thus this provision is not violative of article 14.<\/p>\n\n\n\n
Also, they discussed the concept of reading down and stated that this concept cannot be followed in this section as it would enlarge the scope rather than curtailment.<\/p>\n\n\n\n
It is worthwhile to note that Gujarat HC in a recent judgment read down this provision providing a relief to the taxpayers.<\/p>\n\n\n\n