Refunds received in July & August, 2017 - Sanctioned in Cenvat Credit - Is there provision in GSTR-TRAN.1 yet to be filed

[NageswaraRao Sripada]

Rebate claims have been sanctioned in post GST regime of the claims submitted in pre GST regime. Amounts have been sanctioned by way of Cenvat credit. How to claim such credit. Is there provision in GSTR-TRAN.1 which is yet to be filed. I hardly find such provision in TRAN-1. Please come to my rescue with your valuable suggestions of way out.

[KASTURI SETHI]

Throw ball in the court of the department. You must apply for cash refund again against same order. You have a solid ground that there is no such provision in Common Portal of GST at present. See the jurisdictional Commissioner in person.You can get refund in cash. Make all out efforts. I am sure you will be successful.

[Nash Industries I Pvt Ltd]

The time limit to file the revised TRAN-1 is upto 31st Dec 2017. So, suggest that please incorporate the amount in coloumn 7A of the TRAN-1 wherein instead of Invoice reference, please mention the OIO number.

In case it is not accepted in TRAN-1, then seek refund in cash from the Department.

Regards

S.Ramaswamy

[KASTURI SETHI]

Yes Sir. The party should make efforts both ways and resort to whichever is earlier. Such like provision as suggested must be made in order to save time and interest for the assessee.

[CSSANJAY MALHOTRA]

Dear Mr. Nageswara ji,

To substantiate Sh. Kasturi ji views, please refer to below provisions in GST Act. Department should have sanctioned you refund of CENVAT in Cash citing reference to Transitional provisions as has been done in most of the GST jurisdictions.

You should file Appeal against Order-in-Original to Commissioner (Appeal) and refund shall be sanctioned to you in Cash. At present, Order-in-Original can be challenged or else time for filing Appeal will lapse. Rebate sanctioning authority will not review his order.

 

Sec 142(3) Every claim for refund filed by any person before, on or after the appointed day, for refund of any amount of CENVAT credit, duty, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be paid in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944.

Sec 142(6) (a) every proceeding of appeal, review or reference relating to a claim for CENVAT credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of existing law, and any amount of credit found to be admissible to the claimant shall be refunded to him in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act:

[SHIVKUMAR SHARMA]

Once the order is issued by the Asstt.Commissioner,You have to file Appeal to Commissioner (Appeal) agst.this OIO.

This is my View.

[KASTURI SETHI]

Sh.CS Sanjay Malhotra Ji,

Sir, Thanks for posting comprehensive reply citing statutory provisions. It is a fact that Refund/Rebate Sanctioning Order is Order-in-Original and cannot be reviewed by the Adjudicating Authority who has passed the order. Only option is filing Appeal with the Commissioner (Appeals).

[NageswaraRao Sripada]

I convey my heartfelt thanks to Shri Kasthuri Sethi, Sri Ramaswamy S.,Sri Shivkumar Sarma, and Sri C.S.Sanjay Malhotra for the solution provided by them on the topic which was detailed, enlightened and relieved.

[Ganeshan Kalyani]

Sri Nageswara Rao Garu, you will win in the case. The provision cited by Sri Sanjay Sir clarifies the law. You must get refund in cash. Reproduce the said provision in your reply.

[Nash Industries I Pvt Ltd]

With due respects,would suggest the following:

There is a time limit to file the appeal. The appeal has to be heard and the order is to be passed to sanction the refund in cash.

If the amount of Cenvat through the order is transferred to GST through TRAN-1 iimmediately by revising the TRAN-1, it gets reflected and can be utilised for payment of GST.

If not reflecting in TRAN-1, then can file the appeal and follow the process.

This shall mitigate the uncertainiity as well as the blockage of funds.

No harm in trying.

Regards

S.Ramaswamy

[KASTURI SETHI]

Dear Sir,

I agree with you to the extent that there is no harm in trying but I see no hope at all. We are hoping against hope. After issuance of OIO, the assessee has to follow legal procedure/course and that is filing appeal with the Commissioner (Appeals).

[Ganeshan Kalyani]

Sometime technology comes to the rescue. Law is at one place but technology i.e. return templates, GSTN cash ledger etc has different sequence of adjusting credit. Sometime template tends us to compromise on the law. Say for e.g. late fees on GSTR 3B error was observed in GSTN today while filing return. Whereas late fee is waived.

AI Summary

Cenvat credit refund under transitional provisions: seek TRAN 1 revision and file appeal to obtain cash refund.
Claims sanctioned post appointed day as Cenvat credit must be dealt with under Transitional Provisions: any credit found admissible on disposal under pre existing law is payable in cash. Practitioners should attempt TRAN 1 revision (suggested placement in column 7A with OIO reference) and, irrespective of TRAN 1 outcome, file an appeal against the Order in Original to secure a cash refund under the transitional framework.