Tribunal Rules on GST Credit: Partial Allowance and Remand for Reconsideration of Refund Claims.

The Tribunal partially allowed the appeal, directing the appellant to seek credit from the GST authority for Rs. 20,52,143 and Rs. 2,19,004, credited in the revised Trans-1 but not in the electronic credit ledger. Refund claims of Rs. 41,244 and Rs. 4,87,533 were remanded for reconsideration, as the Tribunal noted eligibility for Cenvat credit under existing law despite post-01.07.2017 payment. The appeal was disposed of with these directives.

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Issues:
Refund claim rejection under Section 142 (3) of CGST Act, 2017 read with Section 11B of the Central Excise Act, 1994.

Analysis:
The appeal was filed against the rejection of a refund claim of Rs. 27,99,924 for the period July to December-2017. The appellant's counsel submitted that certain refund claims had been allowed in the revised Trans-1 but not yet credited in their input tax credit account. The Tribunal had previously addressed a similar issue in cases like Shree Ganesh Remedies Ltd. and Filatex India Ltd. The Revenue reiterated the findings of the impugned order.

Upon careful consideration, the Tribunal found that the refund claims of Rs. 20,52,143 and Rs. 2,19,004 had been allowed in the revised Trans-1 but not yet credited in the electronic credit ledger. The appellant was advised to approach the GST authority for further credit. As for the refund claims of Rs. 41,244 and Rs. 4,87,533, they were rejected on the grounds that the appellant was not eligible for Cenvat credit after 01.07.2017. The Tribunal referred to Section 142(3) to explain that the amount accrued prior to the GST regime was eligible as Cenvat credit under existing law, even if the tax/duty was paid after 01.07.2017.

The Tribunal clarified that the refund could not be rejected solely based on the payment date post-01.07.2017 for amounts accrued before that date. The matter related to the refund of Rs. 41,244 and Rs. 4,87,533 was remanded to the adjudicating authority for a fresh order, considering the observations made. The appeal was disposed of accordingly.

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