Summary / Headnotes
Held - Declined to interfere with the High Court's decision holding that the assessee was entitled to refund of the unutilized input tax credit of Compensation Cess paid on coal used in the manufacture of goods exported on payment of IGST. The Court, relying on the findings recorded by the High Court, found no reason to exercise its jurisdiction under Article 136 of the Constitution and dismissed the SLP, while keeping the question of law open. (Paras 2 and 3).
In favour of assessee
AI Summary of the Case
Question Answered
Issue 1: Whether an exporter who has paid IGST on export of goods is entitled to refund of unutilized Input Tax Credit (ITC) of Compensation Cess paid on coal used in manufacturing exported goods.
Views: SLP dismissed. An exporter is entitled to refund of unutilized ITC of Compensation Cess where the exported goods are zero-rated supplies, IGST paid on exports has been refunded, and no Compensation Cess was payable on the exported goods, rendering the ITC of Compensation Cess incapable of utilization. (Paras 2 and 3).
Issue 2: Whether the refund of unutilized ITC of Compensation Cess is barred by CBIC Circular Nos. 45/19/2018-GST and 125/44/2019-GST where exports are made on payment of IGST.
Views: SLP dismissed. The Circulars were found to have been misinterpreted while rejecting the refund claim, and they do not disentitle an exporter from claiming refund of unutilized ITC of Compensation Cess in the facts of the case. The question of law, however, was left open. (Paras 2 and 3).
Judgment
IN THE SUPREME COURT OF INDIA
before the bench of
mr. PANKAJ MITHAL and
mr. PRASANNA B. VARALE, JJ.
Union of India
Versus
Patson Papers Pvt. Ltd.
Special Leave Petition (Civil) Diary No. 49578 of 2025, decided on 27-10-2025
REPRESENTED BY:
Shri S. Dwarkanath, A.S.G.,
Shri V. C. Bharathi,
Ms. Pankhuri Srivastava,
Shri Pallav Mongia,
Shri Prakash Gautam,
Shri Shubham Saxena, Advocates and
Shri Gurmeet Singh Makker, AOR, for the Petitioner
[Order]. - Delay condoned.
2. In view of the finding recorded in Paragraph 21 of the impugned order [(2025) 29 Centax 457 (Guj.)], we do not deem it necessary to exercise our jurisdiction under Article 136 of the Constitution of India.
3. Accordingly, the Special Leave Petition is dismissed leaving the question of law, if any, open.
4. Pending application(s), if any, shall stand disposed of.