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2021 (1) TMI 1168 - Commissioner - GSTRefund of accumulated ITC on account of Inverted Tax Structure - application filed within the time limitation or not - Section 54(3) of the CGST Act, 2017 - HELD THAT:- The adjudicating authority has rejected the refund claim of the appellant given remarks in the RFD-06 that the claimant is agreed with the show cause notice that he has no objection with respect to rejection of their refund claim. Therefore, the rejection of refund claim of the appellant is correct and proper as appellant was himself agreed with the reason of show cause notice issued by the adjudicating authority. The appellant has taken a plea that since GSTR-3B was declared as valid return under Section 39 of the CGST Act, 2017 Vide Notification No. 49/2019-Central Tax, dated 9-10-2019 hence, application of refund was duly filed by him before expiry of two years from the relevant date when the said notification came into force on 9-10-2019; Therefore, the refund application filed by him within 2 years from the date of 9-10-2019 is valid application and not a time barred application - this notification has given effect from the retrospective effect i.e. 1-7-2017 and accordingly Rule 61(5) of CGST Rules, 2017 providing the GSTR-3B is declared as valid return under Section 39 of the CGST Act, 2017. On going through the provision under Section 54 of the CGST Act, 2017, it is found that the relevant date has been defined in sub-section (14) of Section 54 of the CGST Act, 2017 - the refund application filed by the appellant for the period October, 2017 to December, 2017 is clearly time barred as the same was filed by the appellant on 5-2-2020 i.e. after expiry of 2 years from the relevant date as mentioned in sub-section (14) of Section 54 of the CGST Act, 2017 read with sub-section (1) of Section 54 of the CGST Act, 2017. The Adjudicating Authority has taken a view that formula applied for calculation of Net ITC refund there is no such refund was available to the appellant. In view of provisions of Rule 89(5) of CGST Rules, 2017 - the appellant has not properly gone through the provisions of Section 54 of the CGST Act, 2017 the date and time limit has been clearly mentioned in Section 54(1) read with sub-section (14) of Section 54 of the CGST Act, 2017. Therefore, the submission of the appellant that time limit has not been specifically mentioned on the refund of unutilized ITC is incorrect and not acceptable. The refund application has been filed by the appellant on account of ITC accumulated due to Inverted Tax Structure whereas the appellant stated in the appeal that he has closed his business due to this reason the IGST paid in cash on import of goods is lying unutilized by him - the appellant has filed their refund claim in wrong category as it is not a case of Inverted Duty Structure as given in the provision under Section 54(3) of CGST Act, 2017. The impugned order passed by the Adjudicating Authority is proper and correct - Appeal dismissed.
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