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2020 (10) TMI 849 - Commissioner - GSTRefund of Input Tax Credit availed on the license fee - rejection of refund on the ground that neither exported any goods/services nor their supplies fall under the category of inverted tax structure - HELD THAT:- The appellant is having a retail outlet of M/s Indian Oil Corporation for supply of Oil and Lubricant etc., and filed their refund claim under Section 54(3) (ii) of the CGST Act, 2017 in respect of unutilized Input Tax Credit of ₹ 88,850/- for the month of March-2018 accumulated on account of Inverted Tax Structure. Further, Appellant has also stated that due to lack of proper knowledge of rules and regulation they ignorantly ticked the last column "Any Other" Category instead of refund on account of ITC accumulated on account of Inverted Tax Structure under Section 54 (3) (ii) of the CGST Act, 2017. Section 54(3) of the CGST Act provides that refund of any unutilized ITC may be claimed where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies). Further, Section 2(59) of the CGST Act defines inputs as any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business. Thus, inputs do not include services or capital goods. The Licence Fee paid by the appellant to M/s Indian Oil Corporation does not fall under the definition of inputs as provided under Section 2(59) of CGST Act, 2017. Further, also Licence Fee is not an input for the outward supply of lubricants, Distil water and PUC (pollution under certificate). Therefore, the refund claim filed by the appellant in the instant case does not fall under the category of refund on account of Input Tax Credit accumulated on account of "inverted duty structure" as provided under Section 54(3) of CGST Act, 2017. Thus the appellant is not entitled to refund. Refund not allowed - appeal dismissed - decided against appellant.
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