Section 54 of the CGST Act, 2017 – Refund –-–- Both the Petitions filed by the CGST authorities and by the assessee company challenging the impugned order dated 5th February, 2021 with corrigendum orders dated 17th February, 2021 and 29th July, 2021, passed by the Appellate authority. The petitioner challenged rejection of refund order dated 17th February, 2021, passed by the Appellate authority. The respondent department challenged the impugned order of the Appellate authority, on the ground that the Appellate authority has not considered the definition of ‘non-taxable supply’. The court observed that main issue is that whether for the purpose of computing refund of credit of compensation cess to be made under Section 54 (3), the domestic turnover of final products which are not taxable under the Cess Act, could be excluded to arrive at the adjusted total turnover under Rule 89(4). The court observed that goods which are subject to nil rate of cess would be construed as exempt supplies for purposes of the formula prescribed Rule 89 (4) and therefore, deserves to be excluded from the calculation of adjusted total turnover. They are not inclined to interfere with the impugned order dated 5th February, 2021.

 Held that:- The Hon’ble High Court dismissed the writ petition filed by the authority against impugned order of the Appellate authority dated 5th February, 2021 and allowed Petition filed by the assessee company. Further directed the respondent to refund the amount as per the aforesaid order of the Appellate authority dated 5th February, 2021, along with applicable interest till the date of such payment, within eight weeks.