Case: Union of India v. Tirth Agro Technology (P.) Ltd.

Special Leave Petition (Civil) Diary No. 31632 of 2025 | Dated July 18, 2025.

Background of the Case History

Concern of matter: Refund of the Input Tax Credit (ITC) under Section 54(3) of the CGST Act, 2017, due to inverted duty structure Refund (Feb 2018-Aug 2018).
Trigger: Amendment of Rule 89(5) (refund formula) via Notification No. 14/2022–Central Tax (dated 5-7-2022).
Refunds were initially granted using the old formula before the amendment took effect.
Facts of the Case

• Tirth Agro filed refund claims before 5-7-2022 and received refunds under the old formula.
• Later filed rectification applications seeking additional refunds as per the new formula.
• The department rejected the claim based on the CBIC Circular dated 10-11-2022, which stated the amendment applies prospectively.

Gujarat High Court's Decision

Relied on Ascent Meditech Ltd. v. UOI:
Held amended Rule 89(5) is curative and clarificatory, so it applies retrospectively.
Circular dated 10-11-2022 deemed contrary to law and quashed.
Refunds filed within two years from the original application are eligible as per the amended rule.
Rectification claims for differential refunds are valid if within the statutory time.

Supreme Court's Ruling

• SLP by the Union of India dismissed.

Key Observations:

• The Ascent Meditech decision was already upheld by the Supreme Court on 28 March 2025.
• The present SLP (June 2025) failed to mention this.

Case Conclusion: No grounds for interference; the High Court’s decision is upheld.

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