GSTAT says Tea Trader Can Claim Inverted Duty Refund on Higher-Taxed Packaging

Madanlal Murarilal, a tea trader, accumulated ITC on packaging materials taxed at 18%, while its outward supplies of packaged tea attracted GST at 5%. GSTAT upheld the refund, following its earlier decision in Tea Linker of Siliguriand the High Courts’ rulings on the limits of CBIC circulars. The Department was directed to refund the sanctioned amount within three months.