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2020 (10) TMI 946 - Commissioner - GSTRefund of accumulated credit - Inverted Duty Rate structure - the adjudicating authority has held that the Tax Structure on major Input used and Final Product manufactured is same @ 5% (except some consumables items), therefore, the accumulated input tax credit appeared not to be on account of Inverted tax structure and dis-allowed the refund - HELD THAT:- Refund of unutilized ITC in case of inverted tax structure, as provided in Section 54(3) of the CGST Act, 2017 is available where ITC remains unutilized even after setting off of available ITC for the payment of output tax liability. Where there are multiple inputs attracting different rate of tax, in the formula provided in Rule 89(5) of the CGST Rules, the term Net ITC cover the ITC availed on all inputs in the relevant period, irrespective of their rate of tax - Further, Para -14 of Circular No.79/53/2018-GST dated 31.12.2018 clarified that both the law and the related rules clearly prevent the refund of tax paid on input services and capital goods as part of refund of input tax credit accumulated on account of inverted duty structure. Since the appellant has taken Input Tax Credit on the Input, namely Vanaspati and Cooking Oils, Packing material, Input Services related to job work and Capital Goods etc., which attracts different rates of GST Further - as per CGST Act and Rules clearly prohibit the refund of tax paid on input services and capital goods as part of refund of input tax credit accumulated on account of inverted duty structure. There are no force in the contention of the appellant and the reliance placed by the appellant in their defence is not applicable in this case. The adjudicating authority has rightly passed the order and appellant is not entitled for refund of unutilized input tax credit. Therefore, the appeal is rejected to that extent. Re-credit of the amount of ₹ 1,07,18,285/- in Electronic Credit Ledger of the appellant - Rule 93 of the CGST Rules. 2017 - HELD THAT:- The appellant may approach the adjudicating authority and follow the procedure as laid down under Rule 93 of CGST Rules. 2017. Appeal disposed off.
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