Dear Professionals,
We are continuously exporting goods under Pre & Post GST Regimes. Further facts of case as under :
1. We were not registered in Excise in post GST Period as our goods were not taxable.
2. Our Manufacturing Cycle is of 1 months. So inputs purchased in month of June, 2017 where used in export of goods in the Month of July,2017 & Aug,2017 under Higher Drawback Route/Claim.
Now Issue is that the Finished goods which were manufactured out of goods which were purchased in the Month of July & Aug under GST were exported in the month of Sept & Oct,2017 onwards.
As the goods where exported under Higher Drawback Claim route we are not eligible for double Claim consequently our Input Credit of the Month of July & Aug is rejected on the same ground. But the fact is that the goods purchased in the month of July & Aug under GST were used in consumption of goods exported in the month of Aug & Sept 2017.
As there is no concept of consumption theory in GST Law the eligible credit for the inputs purchased in month of July & Aug is rejected as export is made under drawback route.
Expert's comment required on the same & pl also share if any recent favorable judgment is pronounced in this regards.