TMI Blog2021 (8) TMI 1021X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of law - there are no infirmity in the order passed by the adjudicating authority. Appeal disposed off. - 184 (MAA) CGST/JPR/2021 - - - Dated:- 26-7-2021 - (MANZOOR ALI ANSARI) ADDITIONAL COMMISSIONER (APPEALS) ORDER This appeal has been filed under Section 107 of the Central Goods and Service Tax Act, 2017 (hereinafter also referred to as the Act ) by M/s Sun N Moon Impex, G-29, City Plaza, Banipark, Jaipur-302016 (Raj) (hereinafter also referred to as the appellant ) against the Order-in-Original No.ZN0810200338522 dated 28.10.2020 (hereinafter as the impugned order ) passed by the Deputy Commissioner, Central Goods Service Tax Division-C, Jaipur (hereinafter called as the adjudicating authority ). S. No. Appeal No Order in Original No date(Impugned order) Period of Dispute Order sanctioning/ rejecting refund (1) (2) (3) (4) (5) 1 C.No.APPL/JPR/CGST/ JP/14/1/2021 ZN0810200338522 dated 28.10.2020 July ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es during the relevant period; ie ₹ 13,09,623.00 III. Turnover of zero-rated supply of goods means the value of zerorated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking; ₹ 2,89,44,004.19 IV. Turnover of zero-rated supply of services means the value of zero rated supply of services made without payment of tax under bond or letter of undertaking, calculated in the following manner, namely: Zero- rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero rated supply of services for which the supply of services during the relevant period; RS. 1,14,56,668.02 V. Adjusted Total turnover means the turnover in a State or a Union territory, as defined under subsection (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period; ₹ 4,19,77,385.81 THUS, Refund Amount= (2,89,44,004. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received from the Port (Customs Department) thus the our client have claimed Refund only on Net balance of ₹ 11,20,418/-. The government of India with the intention to promote export have made the provisions under the Act for refund of ITC paid by the exporter, but refund is allowed of ₹ 9,07,029/-, thus balance refund is disallowed of ₹ 213389/- is against the principle of natural justice intention of government of India. 4. Personal hearing in virtual mode through video conference was held on 08.07.2021. Shri Rahul Pandya, Authorized Representative on behalf of the appellant has attended the personal hearing. During the personal hearing he reiterated the grounds of appeal and explained the case in details. In view of submission he requested for favourable decision. 5. I have gone through the facts of the case and the written submissions made by the appellant in their appeal memo as well as oral submission at the time of personal hearing and accordingly, I proceeded for deciding the appeal. 6. At the onset, I discuss the legal provisions of the relevant Act and Rules made thereunder to embark upon the tenacity of appellant's contention as well as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcept the persons covered under notification issued under section 55,claiming refund of any tax, interest, penalty, fees or any other amount paid by him, other than refund of integrated tax paid on goods exported out of India, may file an application electronically in FORM GST RFD-01through the common portal, either directly or through a Facilitation Centre notified by the Commissioner: Provided that any claim for refund relating to balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 may be made through the return furnished for the relevant tax period in FORM GSTR-3*or FORM GSTR-4* or FORM GSTR-7 as the case may be : C. Rule 89(4) of the Central Goods and Services Tax Rules, 2017 provides that in case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017, refund of input tax credit shall be granted as per the following formula:- Refund Amount =(Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC + Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ized input tax credit on account of export of goods is claimed and the value declared in the tax invoice is different from the export value declared in the corresponding shipping bill under the Customs Act, refund claims are not being processed. The matter has been examined and it is clarified that the zero rated supply of goods is effected under the provisions of the GST laws. An exporter, at the time of supply of goods declares that the goods are for export and the same is done under an invoice issued under rule 46 of the CGST Rules. The value recorded in the GST invoice should normally be the transaction value as determined under Section 15 of the CGST Act read with the rules made thereunder. The same transaction value should normally be recorded in the corresponding shipping bill/bill of export. During the processing of the refund claim, the value of the goods 9.1 declared in the GST invoice and the value in the corresponding shipping bill/bill of export should be examined and the lower of the two values should be sanctioned as refund. E . Further, as per Para 47 of CBIC, New Delhi Circular No.125/44/2019-GST dated 18.11.2019 has also clarified as under:- - that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll number and date. It is advised that while processing refund claims, information contained in Table 9 of FORM GSTR-1 of the relevant tax period as well as that of the subsequent tax periods should also be taken into cognizance, wherever applicable. In this regard, Circular No. 26/26/2017-GST, dated 29-12-2017 [2018 (8) G.S. T.L. C3] may be referred, wherein the procedure for rectification of errors made while filing the returns in FORM GSTR-3B has been provided. Therefore, in case of discrepancies between the data furnished by the taxpayer in FORM GSTR-3B and FORM GSTR-1, the proper officer shall refer to the said Circular and process the refund application accordingly. Further, I observed that circular No.37/11/2018-GST dated 15.03.2018 issued by the CBIC, New Delhi superseded vide Circular No.125/44/2019-GST dated 18.11.2019 and in the Para 47 of the said circular, it has been again reiterated that where the value of the goods declared in the GST invoice and the value in the corresponding shipping bill/bill of export should be examined and the lower of the two values should be taken into account while calculating the eligible amount of refund. I also observed that in Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court of India concluded that an exemption Provision of Tax in a tax statute should be construed strictly and any ambiguity should be resolved in favour of revenue. Further, the Hon'ble Supreme Court of India in the case of Ramnath V CTO (2020) 108 CCH 0020 ISCC (Ramnath) is concluded that all provisions for incentive, rebate or any form of concession should be interpreted in the same manner as an exemption provision. The Hon'ble Supreme Court of India in the case of AC V.Dharmendra Trading Co.(1988) 3 SCC 760-has held that though styled as a refund of sales tax, the benefit is in the nature of an exemption or reduction of tax . In view of above ratio of judgments, I find that refund is also an exemption provision, hence, the provisions/ clarification provided in the said circular will be interpreted strictly and benefit will be extended in favour of revenue. 12. Therefore, in strict compliance, as derived from above provisions, I envisage following: (a) that I do not interfere with the amount of ₹ 13,09,623/- as Net ITC as the input tax credit availed during the relevant period as neither the appellant nor the respondent has wrangled over ..... X X X X Extracts X X X X X X X X Extracts X X X X
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