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TMI Blog2021 (8) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... f GST paid on cash carry van for the period of 2018- 2019. Rs. 6,90,400/- . 2. Brief Facts of the case:- 2.1 M/s CMS Info Systems Ltd.,O-16,/O-16A, Third Floor, Amber Tower, Sansar Chand Road, Jaipur having GSTIN 08AAMCS2311K1Z9 are engaged in providing cash management services and for the same, purchase motor vehicles and after fabrication convert them into cash carry vans used for transportation of cash, bullion etc., to and from ATMs etc., has filed refund application amounting to Rs. 6,90,400/- vide ARN No.AA080820031023T dated 18.08.2020. 2.2 On scrutiny of refund applications submitted by the appellant, the adjudicating authority has issued a Show Cause Notices in the Form RFD- 08 dated 26.08.2020 proposing rejection of refund claim on account of following reasons: "As per Hon'ble AAAR, Mahararstara order No. MAH/AAAR/SSR.RJ/04A/2018-19 dated 31.10.2019 the taxpayer is allowed to take Input Tax Credit against the GST paid on the purchase and fabrication of the motor vehicles used for carrying cash and bullions but the order does not talk about any refund of ITC. Therefore refund of the ITC as claimed against the Hon'ble AAAR order dated 31.10.2019 is not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med as refund within two years from relevant date in the prescribed form and manner. 2. It may relevantly be submitted that all the other conditions of section 54 of the said Act are also fulfilled by the Appellants in as much as: a) Section 54(1) of the said Act provides for refund of any tax, interest, or any other amount paid. The said refund claim needs to be filed within two years from relevant date; the appellants have claimed refund of credit of tax paid on cash carry van which is held to be admissible by AAAR Ruling dated 31.10.2019; b) It is the Appellant's case, that till the matter was pending before AAAR, the issue of availability of ITC of tax paid on cash carry vans was not decided and only when AAAR vide Ruling dated 31.10.2019 finally ruled in their favour, the cause of refund of the said credit of tax paid on cash carry van arose; hence, date of the Ruling has to be considered as 'relevant date' as per Explanation (2)(d) to Section 54; The Appellants have filed refund claim on 18.08.2020, which is within two years from date of Ruling; c) alternatively, since the Appellants are purchaser of goods, relevant date has to be 'date of receipt of good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch vehicles or conveyances; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods; 3. The provisions of Section 17(5)(a) and (aa) w.e.f. 1.2.2019, as substituted by section 9 of CGST (Amendments) Act, 2018, is as reproduced below: Section 17. Apportionment of credit and blocked credits - (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely: - [(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely: (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) imparting training on driving such motor vehicles; (aa) vessels and aircraft except when they are used- (i) for making the following taxable supplies, namely: - (A) further supply of such vessels or aircraft; or (B) transportation of passengers; or (C) imparting training on navigating such vessels; or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also not be in consonance with one of the purposes of introduction of GST which is removal of cascading effect of taxes by facilitating seamless flow of credit of taxes paid on raw materials, components, input services etc. used or intended to be used in the course or furtherance of business. 4. Personal hearing in the matter was held on 08.06.2021 through virtual mode, wherein Miss Padmavati Patil, Authorized Representative of the appellant appeared for personal hearing and reiterated the grounds of appeal and explained the same in details. She emphasized that since AAAR allowed the ITC in favour of appellant and the appellant could not availed/utilized the ITC due to provisions of Section 16(4) of the CGST Act, 2017. They applied for refund for the same being it is an amount paid by the appellant and it is fall under Section 54 of the CGST Act, 2017 for entitlement of refund. In view of submission/grounds of appeal she requested for decision in favour of the appellant. 5 On perusal of submissions of the appellant, it is observed that the instant refund case/claim is pertains to input tax credit on purchase and fabrication of cash carry van. In this regard, appellant submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter referred to in sub-section (2) of Section 97 for advance ruling; (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 7 In view of above provision, I conclude that the appellant can not take credit on the basis of ruling of AAAR of Maharastra as it is out of jurisdiction of Rajasthan as it is not binding/applicable in the state of Rajasthan, consequently, solely in the said fact the appellant is not entitled to get the said refund claim. The appellant obviously misconceive the fact by filing the said refund claim in the jurisdiction of Rajasthan accordingly, I do not accede to the plea of the appellant. Further, I also agree with the adjudicating authority findings that the said AAAR, although it is at all not binding on the jurisdictional authority, the said AAAR order does not talk about any refund of ITC hence it is not eligible to them. 8 Further, on going through the provisions of Section 54 of CGST Act, 2017, I find that there is no provision available for such refund of unutilized input tax credit except in following cases. i. Zero rated supplies made without payment of tax. ii. Where the credit has accumulated on accou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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