Appeal dismissed for tax refund request due to Central Excise Credit discrepancy.

The appeal against tax orders under the APGST Act, 2017 disputing the levy of tax was dismissed. The pharmaceutical company sought a refund under CGST, which was partially rejected by the Assessing Authority due to a discrepancy in the claim related to Central Excise Credit. The A.A. maintained that excess credit under Central Excise should be claimed through Tran-01 and not as a refund under the GST Act. The rejection was found legally sustainable based on Circular No. 37/11/2018-GST, leading to the confirmation of the tax levy and dismissal of the appeal.

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Issues:
Appeal against tax orders under APGST Act, 2017 disputing levy of tax.

Analysis:
The appeal was filed by a pharmaceutical company against the tax orders passed by the Assistant Commissioner (ST) for the tax period of November 2017. The company claimed a refund of Rs. 46,76,158 under CGST, out of which Rs. 3,06,785 was rejected by the Assessing Authority (A.A.) as it pertained to Central Excise Credit and not unutilized ITC under GST. The A.A. restricted the amount under CGST over a period of four months, leading to the rejection of the refund claim. The appellant disputed this rejection and sought the refund amount. The A.A. rejected the appeal as it was not filed electronically through the GST portal. The appellant argued that the excess Cenvat credit was disclosed as part of the refund under CGST Act, 2017, based on orders received during the GST period. The A.A. maintained that excess credit under Central Excise should be claimed through Tran-01 only and not as a refund under GST Act.

Issues for adjudication:
1. Dependability and sustainability of the appellant's contentions against the refund rejection orders by the A.A. under the GST Act.
2. Compliance of the refund claim rejection by the A.A. with the provisions of the Act, Rules, and government instructions.

Analysis:
The A.A. rejected the refund claim based on the discrepancy in the claim related to Central Excise Credit and the provisions of the CGST Act. The A.A. emphasized that any excess credit under Central Excise should be claimed through Tran-01 and not as a refund under the GST Act. The Circular No. 37/11/2018-GST issued by the Central Board of Excise and Customs clarified that refunds of tax paid under existing laws should be disposed of in accordance with the provisions of the existing law. It explicitly stated that no refund of any amount of CENVAT credit should be granted under the GST Act. This instruction clearly indicated that excess credit under the Central Excise Act cannot be claimed as a refund under the CGST Act, making the A.A.'s rejection of the refund legally sustainable. Consequently, the appeal was dismissed, and the tax levied was confirmed.

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