Output TAXABLE TAX
40000 5% 2000
8333 12% 1000

Input Taxable. Tax
50000 5% 2500
15000 12% 1800
27778 18% 5000
1786 28% 500

Manufacturer have above details. All the inputs used for making outward supply of 5 & 12 %. It means the case is falling under Inverted Duty structure. But as per above calculation my purchases are more than my sales so officer saying you are stocking up the raw material that is why there is balance in Credit Ledger , hence you are not eligible for refund. As per Section 54 my rate of inputs are higher than outputs.