Inductotherm India Pvt. Ltd. v. Union of India
A cash refund would recreate the outcome disapproved in the earlier appeal. The request was for departmental re-credit, not unilateral credit by the taxpayer or an ordinary cash refund.
By CA Nikhil Gupta · Reviewed against the retained judgment 2026-09-26
A cash refund would recreate the outcome disapproved in the earlier appeal. The request was for departmental re-credit, not unilateral credit by the taxpayer or an ordinary cash refund. The communication of 13 January 2014 was quashed; the department must re-credit ₹3,74,33,462 to the GST electronic credit ledger within six weeks of receiving the order.
What happened
Following earlier excise litigation, duty had been paid through both CENVAT credit and the personal ledger account. The manufacturer sought restoration of the credit rather than a cash refund.
Questions before the court
- Could the department retain the duplicate credit and force a section 11B cash-refund application despite the earlier court ruling?
Why the court ruled this way
A cash refund would recreate the outcome disapproved in the earlier appeal. The request was for departmental re-credit, not unilateral credit by the taxpayer or an ordinary cash refund.
Controlling point
A cash refund would recreate the outcome disapproved in the earlier appeal. The request was for departmental re-credit, not unilateral credit by the taxpayer or an ordinary cash refund.
Order and next steps
The communication of 13 January 2014 was quashed; the department must re-credit ₹3,74,33,462 to the GST electronic credit ledger within six weeks of receiving the order.
Practical implications
The communication of 13 January 2014 was quashed; the department must re-credit ₹3,74,33,462 to the GST electronic credit ledger within six weeks of receiving the order. The remedy follows the particular double-payment history and the earlier tax appeal; it is not an unrestricted cash-refund right.
Limits of this ruling
- The remedy follows the particular double-payment history and the earlier tax appeal; it is not an unrestricted cash-refund right.
Law and judgment source
- Central Excise Act, 1944, section 11B; CENVAT credit; GST electronic credit ledger
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Source checked: 2026-09-26 · Judgment paragraphs: paragraphs 11–14 and final directions · Later case history: not verified. Verify appeals, stays and subsequent orders before reliance.
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