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TMI Blog2019 (6) TMI 1585X X X X Extracts X X X X X X X X Extracts X X X X ..... vision, Parwanoo (for brevity 'the sanctioning authority') rejecting appellants claims partly as per detail appended below. Since the issue involved in all the four appeal cases was common, the same are being taken up for decision under a single Order. S. No. Name of the Appellant/GSTIN No. Order-in-Original No. & Date Period involved Amount Involved 1. M/s. Copmed Pharmaceuticals Pvt. Ltd., Industrial Area, Gondpur, Paonta Sahib, Distt. Sirmour H.P2AAACC6076B2Z9 OIO No. 110/ AC/R-Manual/ RFD-06/PWN/ 2018-19 November, 2017 Rs. 15,84,694/- (CGST- Rs. 15,72,155/- + SGST Rs. 12,539/) 2. OIO No. 109/ AC/R-Manual/ RFD-06/PWN/ 2018-19 September, 2017 Rs. 10,84,551/- (CGST- 10,78,527/- + SGST Rs. 6,024/-) 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioning Authority further computed the refund claims in terms of the methodology provided in sub-rule (5) of Rule 89 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred in as the "Rules") and the lowest amount was calculated separately for each Tax Head of the input tax credit amount namely IGST, CGST and SGST by the Sanctioning Authority and accordingly reduced the refund claims vide the impugned orders. 1.4 Being aggrieved, with the impugned orders of the Sanctioning Authority, the Appellants have preferred the subject appeals on the grounds which inter alia are summarized as under : (i) That the Learned Adjudicating Authority had restricted the refund of input credit in each of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... separately for each Head viz IGST, CGST and SGST or as a consolidated ITC and whether the amount claimed as refund under one head can be debited from another Head in light of the C.B.I. & C. Circular No. 59/33/2018-GST, dated 4-9-2018 (for brevity the Circular). 3.2 I find that in exercise of its powers conferred under Section 168(1) of the Central Goods and Services Tax Act, 2017 the Board has clarified that the provisions of Circular No. 17/17/2017-GST, dated 15-11-2017 shall also be applicable to the following types of refund claims inasmuch as it relates to the manner of filing of the refund claim and its processing which is consistent with the relevant provisions of the CGST Act, 2017 (hereafter referred to as 'the CGST Act') and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch could be granted to the assessee in case of goods produced by the assessee falls under inverted duty structure. The formula is reproduced below : Maximum Amount of refund = {(Turnover on inverted rated supply of goods) x Net ITC + Adjusted Turnover} - Tax payable on such inverted rated supply of goods and services. 3.5 As per Notification No. 21/20018-Central Tax, dated 18-4-2018 : "Net ITC'' shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both. However Notification No. 26/2018-Central Tax New Delhi, the 13th June, 2018 Rule 89(5) was substituted further with retrospective effect i.e. w.e.f. 1-7-2018. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally deals with system validations in calculating refund amount. In this regard I find that the C.B.I. & C. Circular dated 4-9-2018 has clarified the system validations in calculating refund amount and the manner of debiting the amount from the electronic credit ledger of the claimant. The circular has further clarified that - (a) The above method of debiting the amount is not presently available in the portal; and (b) Till the time such facility is made available on the common portal, the taxpayers are advised to follow the order as explained in Para 3.2(b) for cross-utilization of the ITC for debiting of the electronic credit ledgers all refund applications filed after the date of issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants have placed reliance on the circular which specifically deals with system validations in calculating refund amount and is only applicable for all refund applications filed after the date of issue of the Circular dated 4-9-2018. Hence I find that the refund sanctioning authority has correctly sanctioned all the four refund claims within the ambit of the provisions of CGST law. I do not find any infirmity in the same and accordingly uphold the same. 3.10 In light of the foregoing I find that the benefit of the Circular No. 59/33/2018-GST, dated 4-9-2018 cannot be extended to the present appeals inasmuch as the procedure prescribed in the circular is applicable only to the refund applications filed after the issuance of the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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