GSTAT says Refund Cannot Be Denied by Reopening ITC Eligibility

Augustan Knitwear claimed ₹18.41 lakh inverted-duty refund, of which ₹7.07 lakh remained rejected on the ground that certain ITC was ineligible. GSTAT held that the Department cannot use refund proceedings to re-adjudicate ITC already availed in returns when no Section 73/74 proceedings had been initiated to determine its ineligibility.