TMI Blog2021 (2) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the condition of furnishing undertaking has been specified only in case when the supplier of the deemed export intends to file refund claim. As per Para 4 of C.B.E. C. Circular No. 24/24/2017-GST, dated 21-12-2017 - Whereas, the Government has issued notification No. 48/2017-Central Tax, dated 18-10-2017 under Section 147 of the CGST Act wherein certain supplies of goods have been notified as deemed export. Further, the third proviso to Rule 89(1) of the CGST Rules allows the recipient or the supplier to apply for refund of tax paid on such deemed export supplies. In case such refund is sought by the supplier of deemed export supplies, the documentary evidences as specified in Notification No. 49/2017-Central Tax, dated 18-10-2017 are also required to be furnished which includes an undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and that no input tax credit on such supplies has been availed of by him. The undertaking should be submitted manually along with the refund claim. Similarly, in case the refund is filed by the recipient of deemed export supplies, an undertaking by the supplier of deemed export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner, CGST Division-F, Jaipur (for short AC ) being arbitrary, capricious and against factual matrixes of the case, hence deserves to be quashed and against the law and to be set aside. that the department had rejected the refund claim on the ground that the appellant has not followed the procedure for procurement of goods from DTA Unit as prescribed under Circular No. 14/14/2017-GST, dated 6-11-2017 according to which the appellant as required to give prior intimation in Form A to be pre-approved by the Development Commissioner to the Registered Supplier as well as his jurisdictional officer and also to the jurisdictional officer of the appellant and failed to furnish undertaking as described in Para 4 of Circular No. 24/24/2017-GST, dated 21-12-2017. The appellant submits that it had filed refund claim for the month of Nov., 2017 and both these circulars were issued on 6-11-2017 and 21-12-2017 respectively. Since, the GST Rollout the assessees have faced lot of problems in getting the refund on account uncertainty in the procedures, lack of clarity on part of the assessee and department and ambiguity in law. With passage of times department has issued numerous notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n admitted in full in the Special Economic Zone for authorised operations, as endorsed by the specified officer of the Zone; (b) supplier of services along with such evidence regarding receipt of services for authorised operations as endorsed by the specified officer of the Zone : Provided also that in respect of supplies regarded as deemed exports the application may be filed by, - (a) the recipient of deemed export supplies; or (b) the supplier of deemed export supplies in case where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund From the perusal of the aforesaid provisions it is clearly evident that Section 54 permits refund of accumulated ITC only in two situations (a) when such ITC has accumulated on account of zero-rated supply without payment of tax (b) when Input Tax Rate is higher than the Output Tax Rate. Further, such application of refund needs to be filed as per Rule 89 of the CGST Rules, 2017. Third proviso to Rule 89 permits filing of refund application in case of deemed export either by the recipient of deemed export supplies or by the supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order perverse and non-speaking and thus deserves to be set aside on this ground alone. - that so far as non-compliance of giving prior intimation in Form-A pre-approved by Development Commissioner to the supplier and its jurisdictional officer is concerned the appellant submits that such procedure was prescribed in the month of Nov., 2017 only and that too for the suppliers of goods to 100% EOU claiming deemed export benefits. The procedure prescribed by the said Circular is not applicable to the appellant who is recipient of such supplies and intends to claim refund of accumulate input tax credit. Further, the appellant has been told in the discussion with the Development Commissioner, Noida SEZ that there is no such system of issuing any pre-approved Form-A from their office. The appellant has also written letter in this regard to the then Joint Commissioner, Central GST, CGST Division-F with copy marked to Office of the Assistant Development Commissioner, Government of India, Ministry of Commerce and Industry, Department of Commerce, Noida Special Economic Zone, Noida. However, till date the appellant has not received any response from either of the depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty bound to export all its goods and the intention of Legislature has always been to provide tax exemption and benefits to EOU s. 4. Personal hearing in the case was held on 13-3-2020 wherein Shri Ankit Totuka, Advocate on behalf of the appellant appeared. He explained the case in details and reiterated the submissions made in their grounds of appeal he has also submitted the additional written submission dated 13-3-2020 and requested to decide the case accordingly. 5. I have carefully gone through the case records and submissions made in the appeal memorandum as well as written submission submitted by the appellant at the time of personal hearing on 13-3-2020. I find that the adjudicating authority has rejected the refund claim filed on the ground that the claimant has not followed the procedure for procurement of goods from DTA Unit and the appellant was required to give prior intimation in a prescribed proforma in Form A bearing running number containing the goods to be procured, as pre-approved by the Development Commissioner and the details of the supplier before such deemed export/supplies. The question of deemed export arises as the appellant is 100% EOU and supply r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n records of such deemed export supplies in digital form, based upon data elements contained in Form-B (appended herewith). The software for maintenance of digital records shall incorporate the feature of audit trail. While the data elements contained in the Form-B are mandatory, the recipient units will be free to add or continue with any additional data fields, as per their commercial requirements. All recipient units are required to enter data accurately and immediately upon the goods being received in, utilized by or removed from the said unit. The digital records should be kept updated, accurate, complete and available at the said unit at all times for verification by the proper officer, whenever required. A digital copy of Form-B containing transactions for the month, shall be provided to the jurisdictional GST officer, each month (by the 10th of month) in a CD or Pen drive, as convenient to the said unit. 7. The above procedure and safeguards are in addition to the terms and condition to be adhered to by a EOU/EHTP/STP/BTP unit in terms of the FTP 2015-20 and the duty exemption notification being availed by such unit. 8. The appellant has also contested that the cond ..... X X X X Extracts X X X X X X X X Extracts X X X X
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