Appeals dismissed due to non-compliance with CGST rules. Upheld orders based on procedural violations.

The appeals filed by the appellant were rejected, and the impugned orders passed by the adjudicating authority were upheld. The rejection was based on the appellant's failure to comply with the procedural requirements under Rule 89(4A) and 89(4B) of the CGST Rules, 2017, and non-adherence to the procedures prescribed under Section 87 of the CGST Act, 2017, and Rule 41 of the CGST Rules, 2017 following the amalgamation of the appellant company.

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Issues Involved:

1. Rejection of refund claims for unutilized ITC accumulated due to export of goods and services without payment of Integrated Tax.
2. Non-compliance with procedural requirements under Rule 89(4A) and Rule 89(4B) of the CGST Rules, 2017.
3. Non-adherence to the procedures prescribed under Section 87 of the CGST Act, 2017 and Rule 41 of the CGST Rules, 2017 following the amalgamation of the appellant company.

Issue-wise Detailed Analysis:

1. Rejection of Refund Claims for Unutilized ITC:

The appellant, a 100% Export Oriented Unit (EOU), filed refund claims for unutilized Input Tax Credit (ITC) accumulated due to the export of goods and services without payment of Integrated Tax for the months of July, August, and September 2017. The adjudicating authority rejected these claims on the grounds that the appellant did not supply the necessary information as per Sub-rule (4A) or Sub-rule (4B) of Rule 89 of the CGST Rules, 2017. The appellant contended that the rejection was unjust and arbitrary, arguing that the reasons for rejection were either irrelevant or technical in nature and that the adjudicating authority disregarded the provisions of the Act and Rules.

2. Non-compliance with Procedural Requirements under Rule 89(4A) and Rule 89(4B) of the CGST Rules, 2017:

The adjudicating authority noted that the appellant failed to provide information required under Notification No. 48/2017-Central Tax dated 18th October 2017 and Notification Nos. 40/2017, 41/2017, 78/2017, and 79/2017-Central Tax (Rate) dated 23rd October 2017. The appellant argued that they had not claimed refunds under Rule 89(4A) or 89(4B) and had submitted an undertaking that no refund of ITC had been claimed earlier in relation to the invoices submitted in the refund application. However, the authority emphasized the necessity of following the procedures laid down in Circular No. 14/14/2017-GST dated 6th November 2017, which the appellant failed to comply with.

3. Non-adherence to Procedures Prescribed under Section 87 of the CGST Act, 2017 and Rule 41 of the CGST Rules, 2017 Following Amalgamation:

The appellant company amalgamated with its parent company as per the Company Law Tribunal Order dated 14th September 2017. According to Section 87 of the CGST Act, 2017, and Rule 41 of the CGST Rules, 2017, the appellant was required to cancel the GSTIN of the old entity and transfer the unutilized credit to the new entity. The appellant failed to cancel the old GSTIN and did not transfer the unutilized credit as mandated. Consequently, the adjudicating authority rejected the refund claims, stating that the appellant did not follow the prescribed procedures under the Act, Rules, and Circulars.

Conclusion:

The appeals filed by the appellant were rejected, and the impugned orders passed by the adjudicating authority were upheld. The rejection was based on the appellant's failure to comply with the procedural requirements under Rule 89(4A) and 89(4B) of the CGST Rules, 2017, and non-adherence to the procedures prescribed under Section 87 of the CGST Act, 2017, and Rule 41 of the CGST Rules, 2017 following the amalgamation of the appellant company.

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