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TMI Blog2022 (4) TMI 1140X X X X Extracts X X X X X X X X Extracts X X X X ..... stered under the GST Vide GSTIN 33AAFFS6239J1ZO. They have sought Advance Ruling on the following question: 1. Whether an EOU can follow the procedure prescribed in "Explanation to Rule 96 (10) of CGST Rules, 2017" vide Notification 16/2020 - Central Tax dt. 23rd March 2020 and effective from 23.10.2017 of paying IGST/Compensation Cess on import of goods? 2. If answer to the above question is affirmative, then whether the applicant can continue to export goods on payment of IGST and claim refund thereof under Rule 96(10) of COST Rules, 2017 read with Section 16(3) of IGST Act, 2017? 3. Whether it is compulsory for an EOU to procure goods/services without payment of tax from domestic suppliers as contemplated vide Notification No. No. 48/2017-Central Tax dated the 18th of October 2017 read with Section 147 of CGST Act, 2017? 4. Whether it is compulsory for an EOU to apply in FORM RFD-01 and get refund under Rule 89 (4) vide Notification No. 75/2017 Dated 29-12-2017 applicable w.e.f. 23.10.2017 read with Section 16 (3) of IGST Act, 2017? The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h to a Special Economic Zone developer or a Special Economic Zone unit. and Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply. They have further stated that a registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely: (a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or (b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder." RULE 96 (10) OF CGST RULES: a) The persons claiming refund of integrated tax paid on exports of goods or services should not have - (a) receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on EOU provided that they satisfy the condition of payment of IGST and Cess at the time of imports and claiming exemption only for BCD then EOUs can also opt for getting refund of integrated tax paid on exports of goods or services. Presently, they are opting to pay IGST on imports and domestic procurements but availing exemption on other applicable custom duties as specified in Explanation to Rule 96(10). Thus, they are exporting the goods on payment of IGST and claiming refund thereof under Rule 96 (10) of the CGST Rules, 2017 and not under Rule 89(4) of the CGST Rules, 2017 read with section 16(3) of IGST Act, 2017. 3.1 Due to the prevailing PANDEMIC situation and in order not to delay the proceedings, the willingness of the applicant to participate in a virtual Personal Hearing in Digital media was confirmed and hearing was held on 03.02.2022. The Authorised representative, Shri. M. Selvakumar, CA appeared for the hearing virtually and reiterated the submissions. The Members stated that questions 1, 2, 4 are outside the purview of Advance Ruling Authority in as much they pertain to refunds. The Authorised Representative stated that the questions pertain to the applicability of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Rule 96(10) of CGST Rules, 2017 read with Section 16(3) of IGST Act, 2017? 3. Whether it is compulsory for an EOU to procure goods/services without payment of tax from domestic suppliers as contemplated vide Notification No. No. 48/2017-Central Tax dated the 18th of October 2017 read with Section 147 of CGST Act, 2017? 4. Whether it is compulsory for an EOU to apply in FORM RFD-01 and get refund under Rule 89 (4) vide Notification No. 75/2017 Dated 29-12-2017 applicable w.e.f. 23.10.2017 read with Section 16 (3) of IGST Act, 2017? The questions i.e., 1, 2 and 4 relates to procedure for claiming of refund under GST Act and Rules thereon. During the Virtual Personal hearing it was pointed out to the authorized representative of the applicant that question Nos. 1, 2 and 4 are outside the purview of Advance Ruling Authority for issuing Ruling, the applicant replied that these questions pertains to the applicability of Notification No.16/2020 CT (Rate) dated 23-03.2020 with regard to "Explanation to Rule 96(10) of CGST Rules. 6.2 The submission of the applicant, regarding eligibility for the admission of question Nos.1, 2 and 4 is examined with reference to the relevant provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licability of which is raised before us, amends the Rules with the insertion of the explanation is to Rule 96(10)(b). Rule 96 (10) of the CGST Rules 2017 restricts the circumstances for a person claiming Integrated Tax paid on exports of goods or services. This authority do not have jurisdiction to admit questions relating to refund of any tax paid by the applicant as per Section 97(2) of GST Act. Therefore the question numbers, 1, 2 and 4 are not admissible for ruling before this authority. 6.4 Question no. 3 raised by the applicant is as below: "Whether it is compulsory for an EOU to procure goods/services without payment of tax from domestic suppliers as contemplated vide Notification No. 48/2017-Central Tax dated the 18th of October 2017 read with Section 147 of CGST Act, 2017?" The above question relates to the procurement made by the applicant. Section 95 (a) of CGST and TNGST Act defines 'Advance Ruling' as (a) "Advance Ruling" means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of section 100, in relation to the supply of goods or services ..... X X X X Extracts X X X X X X X X Extracts X X X X
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