Divisional Bench Overrules the Singal Bench order of refund of unutilized ITC in cash on account of the closure of business
The Appellant, engaged in the business of manufacturing security inks and solutions, was registered under GST in Sikkim. The Respondent's operations were dependent upon supply orders from the Reserve Bank of India. From January 2019 onwards SICPA discontinued its manufacturing activities in Sikkim. Subsequently, during the period April 2019 and March 2020, the Respondent sold its machinery and facilities, and at the time of sale, it claimed to have reversed the ITC as per the law. At the time of closure, an accumulated unutilized ITC balance of ₹4.37 crore remained in its electronic credit ledger.
