TaxTMI 
TaxTMI 
2020 (2) TMI 854
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....Whether the meaning of word 'lapse' in Notification No. 20/2018-Central Tax (Rate) would mean lapse for refund or lapse for utilization of input tax credit for payment of output tax liability? 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 3. As per the said sub-section (2) of Section 97 of the CGST/SGST Act, 2017 advance ruling can be sought by an applicant in respect of : (a) Classification of any goods or service....
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.... in the present case, we would first go through the submissions filed by the applicant and the same is summarized as under : (i) Notification No. 5/2017-Central Tax (Rate), is restricting the refund on account of inverted duty structure for some specified products only, while there is no condition to restrict the utilization of input tax credit for payment of output tax liability. (ii) Notification No. 20-Central Tax (Rate), withdraw some goods, as a result refund was available on these goods subject to the condition that in respect of goods, the accumulated input tax credit lying unutilized in balance, after payment of tax for and up to the month of July, 2018 on the inward supplies received up to the 31-7-201....
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.... than nil rated or fully exempt supplies). TABLE S. No. Tariff item, heading, sub-heading or Chapter Description of Goods 1. 5007 Woven fabrics of silk or of silk waste 2. 5111 to 5113 Woven fabrics of wool or of animal hair 3. 5208 to 5212 Woven fabrics of cotton 4. 5309 to 5311 Woven fabrics of other vegetable textile fibres, paper yarn 5. 5407, 5408 Woven fabrics of man-made textile materials 6. 5512 to 5516 Woven fabrics of man-made staple fibres 7. 60 Knitted or crocheted fabrics [All goods] 8. 8601 Rail locomotives powered from an external source of electricity or by electric accumulators 9. 8602 ....
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.... Description of Goods 6A 5608 Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials 6B 5801 Corduroy fabrics 6C 5806 Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of; an adhesive (bolducs)". The Notification No. 5/2017-Central Tax (Rate), dated 28-6-2017 was further amended vide Notification No. 20/2018-Central Tax (Rate), dated 26-7-2018 and the said amendment is reproduced as under : Notification No. 20/2018-Central Tax (Rate) dated 26th July, 2018 G.S.R. (E). - In exercise of the powers conferred by clause (ii) of the proviso to sub-section (3) of s....
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....de notification dated 26-7-2018 proviso to Notification No. 5/2017-Central Tax (Rate), dated 28-6-2017 was inserted vide which applicability of notification dated 28-6-2017 was rescinded to the extent of input tax credit accumulated on supplies received on or after the 1st day of August, 2018, in respect of goods mentioned at Serial Numbers 1, 2, 3, 4, 5, 6, 6A, 6B, 6C and 7 supra. (A.3) Now coming to the question in hand, we find that aforesaid notifications had been issued under clause (ii) of the proviso to subsection (3) of Section 54 of the Act. Section 54 of the Act provides for refund of accumulated credit on inputs on account of inverted duty structure, i.e., GST rate on inputs being higher than the GST rates on finished go....