TMI Blog2024 (5) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... on for budgetary support for the quarter ending September, 2017 it did not digress from the mandate of paragraph 5.4 of the Budgetary Support Scheme requiring the filing of the claim on quarterly basis and working the same out also on quarterly basis. The Circular dated 10.01.2019 permitted the assessee to provide month wise details in the table annexed to the refund application to enable speedier and accurate verification of the refunds claims - The petitioner however, admittedly did not follow the budgetary scheme or the instructions of the two Circulars dated 27.11.2017 and 10.01.2019 and file the claim application on a quarterly basis. Instead the petitioner filed separate claims for the month of July 2017 and August 2017 under one covering letter. By this process the petitioner claimed budgetary support of Rs. 16,88,693/- for July 2017 and Rs. 1,54,00,360/- for August, 2017. No claim for budgetary support was made for September 2017. The budgetary support under the Budgetary Support Scheme is in the nature of grant and not refund of duty under taxation law. It was incumbent upon the petitioner to satisfy the requirements of the Budgetary Support Scheme and follow the procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support claimed by the petitioner for the month of July 2017 and August 2017 separately in their initial applications ought to have been favourably considered by the Assistant Commissioner, Central Goods Service Tax (respondent no. 3) although as per the respondent no. 3 the Budgetary Support Scheme envisaged working it out on a quarterly basis on claims to be filed on quarterly basis. 3. The learned counsel for the petitioner submits that there was a violation of principles of natural justice as the same has been passed without granting any opportunity of personal hearing to the petitioner. The Budgetary Support Scheme provides the manner in which the claims can be made and determined. The initial orders of rejection passed by the respondent no. 3 had been set aside by this Court and thereafter, the claims of the petitioner were re-examined. Pursuant thereto out of the four claims made by the petitioner for four quarters, three claims were accepted and budgetary support granted. The petitioner has no grievance against non-grant of opportunity of hearing for those quarters for which their claims were accepted and budgetary support granted. In spite of the petitioner having not fulf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17, November 2017 and December 2017. It is the petitioner s case that the petitioner is entitled to interest on account of delay in sanction of budgetary claim as well. 5. The learned Deputy Solicitor General of India appearing for the respondents draws attention of this Court to paragraphs 3.2, 5.1, 5.4 of the Budgetary Support Scheme as well as paragraph 9(ii) of the Circular dated 27.11.2017 and submits that a combined reading of these provisions requires that as per the formula, whatever balance of ITC of CGST/IGST is available at the end of quarter, the same is to be deducted from the cash payment for calculation of budgetary support claim for the quarter. It is pointed out that the petitioner has not challenged the Circular dated 27.11.2017 and Circular dated 10.01.2019. It is submitted that since the petitioner themselves had claimed budgetary support in the negative there was no need for any personal hearing. It is also submitted that the Budgetary Support Scheme does not envisage grant of any interest as claimed by the petitioner. It is the submission of the respondents that the budgetary support under the Budgetary Support Scheme is in the nature of grant and not refund o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated tax, is not utilized for payment of tax. 5.2. .......... 5.3. Notwithstanding, the rescinding of the exemption notifications listed under para 2 above, the limitations, conditions and prohibitions under the respective notifications issued by Department of Revenue as they existed immediately before 01.07.2017 would continue to be applicable under this scheme. However, the provisions relating to facility of determination of special rate under the respective exemption notifications would not apply under this scheme. 5.4. Budgetary support under this scheme shall be worked out on quarterly basis for which claims shall be filed on a quarterly basis namely for January to March, April to June, July to September October to December. 5.5. .......... 5.6. The grant of budgetary support under the scheme shall be subject to compliance of provisions relating to any other law in force. ... 9. Paragraph 5.4 of the Budgetary Support Scheme provided that the budgetary support shall be worked out on quarterly basis for which claims shall be filed on a quarterly basis namely for January to March, April to June, July to September and October to December. 10. When the petitioner made the claims fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cedure thereof etc. has been enumerated in the Budgetary Support Scheme. It was pointed out in paragraph 6 of the circular dated 27.11.2017 that the claim for quarter ending September, 2017 has already become due. In order to mitigate the difficulties of the eligible units, it has been decided that units would be registered on the basis of application filed by them manually and application for claim of budgetary support for the quarter would also be filed and processed manually. It was further pointed out that the approval of the registration for the Budgetary Support Scheme and processing of the application for budgetary support for the quarter shall also be undertaken manually by the jurisdiction Deputy Commissioner/Assistant Commission of the Central Tax. The circular dated 27.11.2017 also provided forms for registration of eligible units for budgetary support and application for budgetary support. The form for application for budgetary support inter alia sought information from the petitioner of the amount of total tax paid during the quarter in respect of Goods and Services Tax Identification Number (GSTIN). 14. On 10.01.2019 Circular No. 1068/1/2019-CX dated 10.01.2019 was is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on on a quarterly basis. Instead the petitioner filed separate claims for the month of July 2017 and August 2017 under one covering letter. By this process the petitioner claimed budgetary support of Rs. 16,88,693/- (Rupees Sixteen Lakhs Eighty Eight Thousand Six Hundred and Ninety Three) for July 2017 and Rs. 1,54,00,360/- (Rupees One Crore Fifty Four Lakhs Three Hundred and Sixty) for August, 2017. No claim for budgetary support was made for September 2017. 17. The Circular dated 27.11.2017 required that the claim for budgetary support to be calculated in the manner provided therein. This Circular dated 27.11.2017 is not contrary to the Budgetary Support Scheme but in furtherance thereof. Claim for budgetary support was to be calculated in the following order: (a) Budgetary support in respect of intra-state supplies + {(CGST in cash Balance of (ITC of CGST +ITC of IGST)) * 58%) * (1-Value under (G)}/ Value under (F) (b) Budgetary support in respect of inter-state supplies {(IGST in cash-balance # of (ITC of IGST + ITC of CGST)) * 29%) * (1-Value under (G)}/Value under (F). # Balance to be taken under (b) after excluding amount considered under (a) above (c) Total Budgetary Suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect applications it is quite clear that what the petitioner intended to do was to make the authorities to work out the budgetary support on the basis of the monthly claims filed by them earlier and not as per the quarter as required under the Budgetary Support Scheme. Had the details required to be provided in the form as mandated in the Budgetary Support Scheme and the two circulars were filled by the petitioner in the first instance there was no requirement for the authorities to require the petitioner to resubmit the applications. The details provided in the subsequent application by the petitioner as per the Budgetary Support Scheme and the two circulars led to the calculation of the budgetary support in the negative as seen above by the petitioner itself. The budgetary support under the Budgetary Support Scheme is in the nature of grant and not refund of duty under taxation law. It was incumbent upon the petitioner to satisfy the requirements of the Budgetary Support Scheme and follow the procedure prescribed. When a procedure is prescribed, the petitioner while seeking the grant of budgetary support, is required to follow that procedure and not work out a different procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
