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GST - Section 54(3) of the CGST Act of 2017 - Refund of Input Tax Credit under Inverted Duty Structure - Refund of accumulated input tax credit on the purchase of mustard oil for manufacture of edible oil – Vide Notification No. 09/2022-Central Tax (Rate) dated 13.07.2022, made effective from 18.07.2022, the goods purchased by the petitioner were placed in the negative list for claiming ITC on account of inverted duty structure - Whether the petitioner is entitled to refund of input tax credit on raw materials purchased up to July 18, 2022 – HELD - The petitioner is entitled to claim refund of ITC on raw materials purchased up to July 18, 2022, despite the Notification dated July 13, 2022 - Since the Notification No. 09/2022-CT (Rate) came into effect from July 18, 2022, the petitioner's right to claim refund of ITC accrued prior to that date and cannot be denied - the clarification issued vide Circular No. 181/13/2022-GST dated 10.11.2022, which has the effect that the assessee shall be granted refund only if the application has been filed prior to 18.07.2022 is contrary to the basic Notification dated 13.07.2022 so also Section 54 of the CGST Act – The Circular No. 181/13/2022-GST dated 10.11.2022 falls foul to Article 14 of the Constitution of India, inasmuch as the right to claim refund of Input Tax Credit on inverted duty structure has been denied with effect from 18.07.2022 only. No assessee can be expected to file claim of refund of the tax for the period paid upto 18.07.2022 on 18.07.2022 itself, more so when the limitation for claiming refund under Section 54 is two years – Input Tax Credit is an indefeasible right of an assessee, which accrues to it on the date when the goods were bought. The right to claim refund of ITC cannot be restricted in the manner provided in the impugned Circular - The Point No. 2 of the Circular No. 181/13/2022-GST dated 10.11.2022 is declared illegal and arbitrary being violative of Article 14 of the Constitution of India and also contrary to the purport and import of the Notification dated 13.07.2022. The Point No. 2 of the Circular No. 181/13/2022-GST dated 10.11.2022 is quashed to the extent of confining the refund of input tax to the application filed upto 18.07.2022 – The writ petition is allowed
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