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Central Government vide notification No. 5/2017,had notified the items in respect of which no refund of un-utilized items would be allowed.It was submitted that sub-section (3) of section 54 empowers the Government to notify the goods in respect of which the proviso to subsection (3) of section 54 would not apply.

Input Tax Credit — The petitioner submits that sub-section (3) of section 54 empowers the Government to notify the goods in respect of which the proviso to subsection (3) of section 54 would not apply. However, the said section does not in any manner empower the Government to provide for lapsing of the input tax credit. It was submitted that the respondents are therefore not granting refund to the petitioner unless the petitioner reverses the input tax credit received upto 31st July,2018. It was submitted that therefore, the impugned notification to the extent the same provides for lapsing of the input tax credit, is ultra-vires subsection (3) of section 54 of Central Goods and Services Tax Act. Notice issued. By way of ad-interim relief, the petitioner is permitted to reverse the input tax credit subject to the final outcome of the petition. — Federatio of Gujarat Weavers Welfare Association Vs. Union of India [2018] 07 TAXLOK.COM 063 (Gujarat)

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