Validity of provision denying refund on services under ‘Inverted Duty Structure’ challenged before Calcutta HC

Calcutta HC hears writ petition challenging validity of Explanation to Rule 89 (5) which denies refund of accumulated credit on services in case of inverted duty structure (IDS); Challenge is further raised to validity of proviso to Section 54(3) on grounds of being ultra-vires to Articles 14 and 19 (1) (g); Petitioner, engaged in manufacture of textile products (which suffers an input tax at the rate of 12%/18%, while the output tax rate is 5%) has approached the Court assai...