Reimbursement on GST Paid in SEZ: Orissa HC allows Disbursement of Sanction Order in favour of Vedanta Ltd [Read Order]
The SEZ unit/developer's suppliers must provide LUT to avoid having to collect GST. If they fail to provide an LUT, they must collect IGST before the SEZ unit or developer can receive a refund of the Input Tax Credit under GST.
![Reimbursement on GST Paid in SEZ: Orissa HC allows Disbursement of Sanction Order in favour of Vedanta Ltd [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/special-economic-zone.jpg "Reimbursement on GST Paid in SEZ: Orissa HC allows Disbursement of Sanction Order in favour of Vedanta Ltd [Read Order]")
In a recent case of Vedanta Ltd, the Orissa High Court allowed the disbursement of a sanction order in the case of a reimbursement on Goods and Services Tax (GST) paid in a Special Economic Zone (SEZ). Vedanta Limited, the petitioner, filed the appeal before the High Court challenging on reimbursement of GST paid in an SEZ. Mr. Agarwal, the advocate, virtually appeared on behalf of...
In a recent case of Vedanta Ltd, the Orissa High Court allowed the disbursement of a sanction order in the case of a reimbursement on Goods and Services Tax (GST) paid in a Special Economic Zone (SEZ).
Vedanta Limited, the petitioner, filed the appeal before the High Court challenging on reimbursement of GST paid in an SEZ. Mr. Agarwal, the advocate, virtually appeared on behalf of the petitioner and submitted that his client is a developer of a Special Economic Zone (SEZ). It is entitled to reimbursement of duty paid on goods and services obtained by it in the SEZ. He draws attention to the sanction order dated 1st April, 2024 issued by opposite party no.4 for reimbursement of duty amounting to ₹61,18,41,678/-. He submitted that the interference of Court is sought for disbursement of the amount to his client.
GST Judicial Precedents Click here
Mr. Parhi, advocate, Deputy Solicitor General appears on behalf of opposite parties and submitted petitioner’s earlier writ petition W.P.(C) no.40391 of 2023 was disposed of by coordinate Bench on order dated 15th December, 2023. He prays for adjournment to obtain instruction on how petitioner’s representation was disposed of pursuant to direction in said order.
A division bench of Justice Arindam Sinha, the Acting Chief Justice and Justice M.S. Sahoo viewed that the petitioner is in possession of a sanction order. Disposal of the representation can only deal with manner in which disbursement is to be made. Adjournment is granted for opposite parties to inform Court on petitioner’s claim for disbursement on the sanction.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
