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2020 (2) TMI 1353 - Commissioner - GSTRefund of CGST and SGST - Unutilized ITC - Export of goods - zero rated supply - period July, 2017 - refund of CGST ₹ 6,36,878/-, IGST ₹ 11,219/- was rejected on the ground that the appellant has claimed DBK in Group A and also not submitted invoices - HELD THAT:- The appeal filed by the appellant on the ground that the adjudicating authority has rejected the drawback claims for the transition period of one month i.e. July, 2017 on account of that the appellant has claimed DBK in Group ‘A’ and not submitted the invoices relating to ITC of IGST and SGST - further it is observed that consequent upon implementation of GST with effect from 1-7-2017, Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 were also continued for a transition period of three months i.e. from July, 2017 to September, 2017 vide [Circular] No. 22/2017-Cus., dated 30-6-2017. According to notes & conditions No. 7 to Notification No. 131/2016-Cus., dated 31-10-2016, “if the rate indicated is the same in the columns (4) and (6), it shall mean that the same pertains to only Customs component and is available irrespective of whether the exporter has availed of Cenvat Facility or not”. I also find that the appellant’s commodity are classifiable under Tariff Item No. 6914 “Other Ceramic Articles”, (Invoice No. 17/25, dated 29-7-2017) under Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 which attracts the same rates of drawback i.e. 1.5% under both the columns (4) & (6). Hence, it is evident that the appellant has claimed drawback of Customs component only for their export - Further, as per Circular No. 22/2017-Cus., dated 30-6-2017, which deals with drawback claims for the transition period, clearly provides that “While a transition period of three months has been allowed, the exporters shall have an option to claim only Customs portion of AIRs of duty drawback i.e. rates and caps given under column (6) & (7) respectively of the Schedule of AIRs of duty drawback and avail input tax credit of CGST or IGST or refund of IGST paid on exports”. Furthermore, C.B.E. & C. vide Circular No. 37/11/2018-GST in F. No. 349/47/2017-GST, dated 15-3-2018 has also clarified that a supplier availing drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of Central tax/State tax/Union territory tax/Integrated tax/Compensation Cess under the said provision. The appellant has also submitted the copies of invoices of ITC of IGST which were not submitted at the time of personal hearing held before the adjudicating authority resulting to rejection of refund claim. The appellant is directed to submit all such invoices before the adjudicating authority for verification. The appeal filed by the appellant allowed only to the extent of rejection of refund of IGST amounting to ₹ 2245/- and CGST amounting to ₹ 1,10,755/- subject to verification by the adjudicating authority.
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