TaxTMI 
TaxTMI 
2020 (10) TMI 1099
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....may be pleased to issue an appropriate writ, order or direction quashing and setting aside the amendments in sub­-rule (10) of Rule 96 of the CGST Rules and GGST Rules substituted vide Notification Number 54/2018­-Central Tax, dated 9 October 2018 and Notification No.54/2018-­State Tax, No. (GHN ­99) / GSTR­-2018(33)TH, dated 9 October 2018, to the extent it denies the option of rebate claim to the Petitioner for importing goods under AA License, as being ultra vires of the CGST Act, GGST Act and Rules made thereunder and the Constitution; b) this Hon'ble Court may be pleased to issue a writ, order or direction staying any demand against Rebate benefits availed by the Petitioner due to retrospective operation of the impugned Notifications on Rule 96(10) of the CGST and the GGST Rules; c) this such further and other reliefs be granted as this Hon'ble Court may deem fit and proper." 4. The short facts of the case are as under: 4.1. The petitioner is a public limited company engaged in the business of manufacturing and sale of flexible packaging films. The petition is filed through its Director and Authorized person Mr. Anil Kumar Ja....
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....6 of the CGST Rules was amended by Notification dated 4th September, 2018 with retrospective effect from 23rd October, 2017, providing that rebate on exports cannot be availed by the petitioner, if the inputs procured by the petitioner have enjoyed AA benefits or Deemed Export Benefits under the said notification. Therefore, the petitioner was unable to utilize the benefit of duty­free imports under AA Licenses and take the benefit of rebate on exports, because of the amendments made in Rule­ 96(10) of CGST Rules. It appears that, thereafter, by Notification No. 53/2018­Central Tax dated 9th October 2018, sub­clause (a) and (b) of sub­-rule 10 of Rule 96 of the CGST Rules were merged. Thereafter, vide Notification No. 54/2018­-Central Tax dated 9th October 2018, the sub­-rule 10 of Rule 96 of the CGST Rules was again de­merged and "with effect from 23rd October, 2017" thereby indicating that Notification No. 54/2018-­Central Tax do not intend to apply the amendment to Rule­ 96(10) of the CGST Rules retrospectively. The petitioner has therefore preferred this petition challenging the aforesaid notifications and amendments made in sub­-rule....
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.... in the return furnished under section 39 in such manner as may be prescribed. (2) A specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person or class of persons, as notified under section 55, entitled to a refund of tax paid by it on inward supplies of goods or services or both, may make an application for such refund, in such form and manner as may be prescribed, before the expiry of six months from the last day of the quarter in which such supply was received. (3) Subject to the provisions of sub­-section (10), a registered person may claim refund of any unutilised input tax credit at the end of any tax period: Provided that no refund of unutilised input tax credit shall be allowed in cases other than-- (i) zero rated supplies made without payment of tax; (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies....
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....cation of documents furnished by the applicant. (7) The proper officer shall issue the order under sub­-section (5) within sixty days from the date of receipt of application complete in all respects. (8) Notwithstanding anything contained in sub­-section (5), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to- (a) refund of tax paid on export exports of goods or services or both or on inputs or input services used in making such zero­rated supplies; (b) refund of unutilised input tax credit under sub­-section (3); (c) refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued; (d) refund of tax in pursuance of section 77; (e) the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person; or (f) the tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notific....
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....e, furnished all the returns required under section 39. (14) Notwithstanding anything contained in this section, no refund under sub section(5) or sub­-section (6) shall be paid to an applicant, if the amount is less than one thousand rupees. Explanation.-For the purposes of this section,-- (1) "refund" includes refund of tax paid on zero­rated supplies of goods or services or both or on inputs or input services used in making such zero­rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilised input tax credit as provided under sub­-section (3). (2) "relevant date" means- (a) in the case of goods exported out of India where a refund of tax paid is available in respect of goods themselves or, as the case may be, the inputs or input services used in such goods,-- (i) if the goods are exported by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India; or (ii) if the goods are exported by land, the date on which such goods pass the frontier; or (iii) if the goods are exported by post, the date of despatch ....
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....FORM GSTR-­3 [or FORM GSTR­-3B, as the case may be]. (2) The details of the [relevant export invoices in respect of export of goods] contained in FORM GSTR-­1 shall be transmitted electronically by the common portal to the system designated by the Customs and the said system shall electronically transmit to the common portal, a confirmation that the goods covered by the said invoices have been exported out of India: [Provided that where the date for furnishing the details of outward supplies in FORM GSTR­-1 for a tax period has been extended in exercise of the powers conferred under section 37 of the Act, the supplier shall furnish the information relating to exports as specified in Table 6A of FORM GSTR-­1 after the return in FORM GSTR­-3B has been furnished and the same shall be transmitted electronically by the common portal to the system designated by the Customs: Provided further that the information in Table 6A furnished under the first proviso shall be auto­drafted in FORM GSTR­-1 for the said tax period.] (3) Upon the receipt of the information regarding the furnishing of a valid return in FORM GSTR-­3 ....
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.... [(10) The persons claiming refund of integrated tax paid on exports of goods or services should not have ­ (a) received supplies on which the benefit of the Government of India, Ministry of Finance notification No.48/2017­Central Tax, dated the 18th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, sub section(i), vide number G.S.R. 1305(E), dated the 18th October, 2017 except so far it relates to receipt of capital goods by such person against Export Promotion Capital Goods Scheme or notification No.40/2017 - Central Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, sub­-section (i), vide number G.S.R 1320(E), dated the 23rd October, 2017 or notification No.41/2017 - Integrated Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, sub­-section (i), vide number G.S.R 1321 (E), dated the 23rd October, 2017 has been availed; or (b) availed the benefit under notification No. 78/2017­-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Secti....
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....recipient shall move the said goods from place of registered supplier - (a) directly to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; or (b) directly to a registered warehouse from where the said goods shall be move to the Port, Inland Container Depot, Airport or Land Customs Station from where the said goods are to be exported; (vii) if the registered recipient intends to aggregate supplies from multiple registered suppliers and then export, the goods from each registered supplier shall move to a registered warehouse and after aggregation, the registered recipient shall move goods to the Port, Inland Container Deport, Airport or Land Customs Station from where they shall be exported; (viii) in case of situation referred to in condition (vii), the registered recipient shall endorse receipt of goods on the tax invoice and also obtain acknowledgement of receipt of goods in the registered warehouse from the warehouse operator and the endorsed tax invoice and the acknowledgment of the warehouse operator shall be provided to the registered supplier as well as to the jurisdictional tax ....
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....nvoice number issued by the registered supplier in respect of the said goods in the shipping bill or bill of export, as the case may be; (iv) the registered recipient shall be registered with an Export Promotion Council or a Commodity Board recognised by the Department of Commerce; (v) the registered recipient shall place an order on registered supplier for procuring goods at concessional rate and a copy of the same shall also be provided to the jurisdictional tax officer of the registered supplier; (vi) the registered recipient shall move the said goods from place of registered supplier­ (a) directly to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; or (b) directly to a registered warehouse from where the said goods shall be move to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; (vii) if the registered recipient intends to aggregate supplies from multiple registered suppliers and then export, the goods from each registered supplier shall move to a registered warehouse and after aggregation, the....
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.... the Director General of Foreign Trade under Chapter 4 of the Foreign Trade Policy 2015­-20 for import or domestic procurement of inputs on pre­import basis for physical exports. 2.Export Promotion Capital Goods Authorisation means an authorisation issued by the Director General of Foreign Trade under Chapter 5 of the Foreign Trade Policy 2015­-20 for import of capital goods for physical exports. 3."Export Oriented Unit" means an Export Oriented Unit or Electronic Hardware Technology Park Unit or Software Technology Park Unit or Bio­Technology Park Unit approved in accordance with the provisions of Chapter 6 of the Foreign Trade Policy, 2015­20." 5.7. Notification No. 3/2018­-C.T. dated 23­ Jan 2018 read as under: ".... (x) with effect from 23rd October, 2017, in rule 96, (a) in sub­-rule (1), for the words "an exporter", the words "an exporter of goods" shall be substituted; (b) in sub­-rule (2), for the words "relevant export invoices", the words "relevant export invoices in respect of export of goods" shall be substituted; (c) in sub­-rule (3), for the words "the system desi....
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.... No.48/2017­-Central Tax, dated the 18^th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, sub­-section (i), vide number G.S.R. 1305(E), dated the 18th October, 2017 or notification No. 40/2017-Central Tax (Rate), dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, sub section(i), vide number G.S.R. 1320(E), dated the 23rd October, 2017 or notification No.41/2017­-Integrated Tax (Rate), dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, sub section(i), vide number G.S.R. 1321(E), dated the 23rd October, 2017 has been availed; or (b) availed the benefit under notification No.78/2017­-Customs, dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, sub­-section (i), vide number G.S.R. 1272(E), dated the 13th October, 2017 or notification No.79/2017-­Customs, dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, sub­-section (i), vide number G.S.R. 1299(E), dated the 13th October, 2017." 5.9. Notification No.53/2018-­C.T. dated....
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....d by Section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government thereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: 1. (1) These rules may be called the Central Goods and Services Tax (Twelfth Amendment) Rules, 2018. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 89, for subrule (4B), the following sub­-rule shall be substituted, namely:­ "(4B) Where the person claiming refund of unutilised input tax credit on account of zero rated supplies without payment of tax has - (a) received supplies on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 40/2017­-Central Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, sub section(i), vide number G.S.R 1320 (E), dated the 23rd October, 2017 or notification No. 41/2017­-Integrated Tax (Rate), dated the 23rd October, 2017, publis....
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....e of India, Extraordinary, Part II, Section 3, sub­-section (i), vide number G.S.R 1299 (E), dated the 13th October, 2017 except so far it relates to receipt of capital goods by such person against Export Promotion Capital Goods Scheme." 6.1. The learned advocate Mr. Abhishek Rastogi appearing with the learned advocate Mr. Nachiket Dave for the petitioner submitted that as per the amended Rule­ 96 (10) of the CGST Rules, the petitioner is not entitled to get rebate benefits under Section 16(3)(b) of the IGST Act in view of the amendment w.e.f. 23rd October 2017 where the petitioner has availed the benefit of upfront IGST exemption on imports against AA Licenses, as conferred upon the petitioner through Notification No. 79/2017-Customs dated 13th October, 2017. 6.2. It was submitted that the Domestic Tariff Area (for short 'DTA') suppliers of the petitioner may avail Deemed Export Benefits and claim refund of input taxes, if they supply goods to the petitioner who holds AA License under Notification No. 48 of 2017 dated 18th October, 2017, but the petitioner is denied the benefits under rebate mode under Rule 96 (10) as amended by the impugned Notification No. 54 of 20....
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....xport. 6.7. Mr. Rastogi submitted that the petitioner is discriminated qua others who have not availed the benefits of the Advance Authorization Scheme, which would result in violation of Article 14 of the Constitution of India, as the regular exporters are able to avail the option of rebate and recover rebate for accumulated input tax credit balance. It was submitted that, AA License holders or regular exporters earn foreign exchange for the country and boost the economy of the nation and therefore, there should not be any reasonable classification by subjecting the petitioner to different tax treatments. 6.8. It was submitted that, there is no case of reasonable classification for the exporters who have availed the benefit of AA License because there is no nexus which is sought to be achieved, as the rational behind introduction of sub­-rule (10) of Rule­ 96 is that benefit should not be claimed by both the suppliers of AA License holders and the AA License holders themselves. 6.9. It was submitted that in case of the suppliers of AA License holders, refund is claimed against deemed exports under Rule­89 of the CGST Rules, wherein, it is specifically provided....
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....t to the extent of tax paid on the inward supply and such benefit under the rebate mode cannot exceed, the input tax credit balance available with the AA License holder, i.e. the amount of input tax credit actually availed in the past and therefore, there is no question of additional benefit being availed in absence of sub­-rule (10) of Rule­ 96 of the CGST Rules. 6.12. Reliance was placed on the Circular No. 45/19/2018­GST dated 30th May 2018 and more particularly para­7.1 thereof, emphasizes the objective of introduction of sub­-rule (10) of Rule­ 96 which reads as under: "sub­-rule (10) of rule 96 of the CGST Rules seeks to prevent an exporter, who is receiving goods from suppliers availing the benefit of certain specified notifications under which they supply goods without payment of tax or at reduced rate of tax, from exporting goods under payment of integrated tax. This is to ensure that the exporter does not utilise the input tax credit availed on other domestic supplies received for making the payment of integrated tax on export of goods." 6.13. It was submitted that, the rationale given in the aforesaid notification is illogical, ....
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.... in support of such submission. 6.18. It was submitted that, the retrospective introduction in sub­-rule (10) of Rule­ 96 of CGST Rules, the petitioner is unfairly penalized as a consequence of claiming benefits during the interim period from 23rd October 2017 till 4th September 2018. 6.19. It was further submitted that the AA License scheme has been introduced by the respondent no.1 with the objective of boosting exports, enhancing foreign exchange earnings and attracting more investment in the country, and therefore, AA License holders are granted with additional fiscal benefits and incentives vis­avis regular exporters. It was therefore submitted that to deny the benefits which are available to regular exports that are not holding the AA Licensee to the AA License holders, it goes against the policy of granting of AA License and denial of such benefits defeats the whole purpose of the AA License scheme. 6.20. Mr. Rastogi thereafter submitted that it is a settled legal position that taxes cannot be exported, as per the norms prescribed by the World Trade Organization (for short 'WTO') which specifically permits remission of duties and taxes on exported produc....
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....pondent nos. 1, 3 and 4: "9. I say that the petitioner challenges that sub­-rule (10) of Rule 96 is beyond the competence of the respondents and is consequently invalid. The said contention of the petitioner is not correct. In terms of Section 164 of the CGST Act, the Government, may on the recommendation of the Council, by notification make rules for carrying out the provisions of the Act. The approval of the GST Council, which is a Constitutional body constituted under Article 279A of the Constitution of India and mandated with making all GST related decisions, has been obtained for all the above measures. The above notifications were issued on the recommendation of GST Council on the basis of decision taken in its 25^th Meeting, held on 15.01.2018. The subject matter was presented at Serial No.9 of Agenda item no. 7(i) before GST Council. The decision taken, as recorded in minutes of meeting, was as under: "17. For Agenda item 7, the Council approved the proposed changes in CGST Rules and Forms, as contained in Agenda item 7, except for Serial No.5 of Agenda item 7(i)(v) relating to purchase value of goods repossessed from a defaulting borrower". A....
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....is place on judgment of hon'ble Supreme Court in case of Amalgamated Tea Estate Co. Vs. State of Kerala, (1974) CTR (S.C.) 192, wherein it was said that ­ "as revenue is the first necessity of the State and as taxes are raised for various purposes and by an adjustment of diverse elements, the court grants to the State greater choice of classification in the field of taxation than in other spheres." and that ­ "On a challenge to a statute on the ground of Article 14, the court would generally raise a presumption in favour of its constitutionality. Consequently, one who challenges the statute bears the burden of establishing that the statute is clearly violative of Article 14." In N. V. Somaraju Vs. Govt. of India 1973 Tax LR 1084 (Andh.Pra.), it was held that­ "While considering the provisions of Article 14 of the Constitution, no precise or mathematical accuracy is contemplated and what is to be seen is overall equality given to the same class." and "in the matter of taxation the legislature has greater freedom not only to classify the different persons or subjects in regard to whom or which tax is to be levied but different modes....
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.... such goods are sold, costing whereof is done keeping in view the expenses involved in the manufacture of such goods plus the profits which the manufacturer intends to earn. Insofar as costing is concerned, element of expenses incurred on raw material would be included. In this manner, when the final product is sold and the VAT paid, component of raw material would be included again. Keeping in view this objective, the Legislature has intended to give tax credit to some extent. However, how much tax credit is to be given and under what circumstances, is the domain of the Legislature and the courts are not to tinker with the same. 19 This proposition is authoritatively determined by this Court in series of judgments. We may refer to the judgment in Godrej & Boyce Mfg. Co. Pvt. Ltd. & Ors. v. Commissioner of Sales Tax and Others, 1992 3 SCC 624 and the relevant extract which is relevant for our purposes is as follows: "9. Sri Bobde appearing for the appellants reiterated the contentions urged before the High Court. He submitted that the deduction of one per cent, in effect, amounts to taxing the raw material purchased outside the State or to taxing the sale of finis....
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....n sale of manufactured goods effected outside the State of Maharashtra appears to be beside the point and is unacceptable. So is the argument about apportioning the sale­price with reference to the proportion in which raw material was purchased within and outside the State. (emphasis added)" To the same effect are the judgments in the case of Hotel Balaji & Ors. v. State of Andhra Pradesh & Ors., 1993 Supp 4 SCC 536 and Jayam and Company v. Assistant Commissioner and Another, 2015 15 SCC 125. 20 The upshot of the aforesaid discussion would be to hold that reduction of 4% would be applied whenever a case gets covered by sub­clause (ii) and again when sub­clause (iii) is attracted. This, however, would be subject to one limitation. In those cases where VAT paid on such raw material is 4%, as in the case of furnace oil, reduction cannot be more than that. After all, Section 11 deals with giving credit in respect of tax that is paid. Therefore, if some reduction is to be made from the said credit, it cannot be more than the credit given. Thus, so far as furnace oil is concerned, tax credit shall be reduced by 4%. On the other hand, tax credit given in case....
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.... amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed. Under sub section [3] of Section 140, a registered person, who was not liable to be registered under the existing law and other category of persons mentioned therein, would be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi finished or finished goods held in stock on the appointed day; subject to conditions contained in clauses [i] to [v] therein. Sub section [10] of Section 140 provides that the amount of credit under sub sections [3], [4] and [6] shall be calculated in such manner as may be prescribed. Counsel for the petitioners had compared the language used by the legislature in sub sections [1] and [3] of Section 140 to argue that the expression "in such manner as may be prescribed" used in sub section [1] was missing in sub section[3]. 20 In his contention, therefore, the rules that the subordinate legislature framed could not have prescribed a time limit for mak....
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....nder clauses (i) to (v) of the said subsection. It is only in the proviso below clause (v) of sub section [3] that the legislature has provided that where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payment of duty in respect of inputs, then, such registered person shall; subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed. For apparent reasons, this proviso does not apply to all cases and its effect is local, to cover cases where a person is not in possession of an invoice or any other documents evidencing payment of duty in respect of inputs. 22 We can however not be oblivious to Section 164 of the CGST Act, which is the rule making power and reads as under : "164. Power of Government to make rules : [1] The Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act.....
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.... reduced rate of duty or concession in payment of duty are in the nature of an exemption and is always open for the legislature to grant as well as to withdraw such exemption. As noted in case of Jayam & Company [Supra], the Supreme Court had observed that input tax credit is a form of concession provided by the legislature and can be made available subject to conditions. Likewise, in the case of Reliance Industries Limited [Supra], it was held and observed that how much tax credit has to be given and under what circumstances is a domain of the legislature. In case of Godrej & Boyce Mfg. Co. Pvt. Limited [Supra], the Supreme Court had upheld a rule which restricts availment of MODVAT credit to six months from the date of issuance of the documents specified in the proviso. The contention that such amendment would take away an existing right was rejected. 26 While the entire tax structure within the country was thus being replaced by a new frame work, it was necessary for the legislature to make transitional provisions. Section 140 of the CGST Act, which is a transitional provision, essentially preserves all taxes paid or suffered by a dealer. Credit thereof is to be given i....
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....y the petitioner before the Delhi High Court which was disposed of by order dated 16th January 2019 permitting the petitioner to withdraw the said writ petition and the petition may be treated as representation to the respondent, who should examine the grievance of the petitioner. It was therefore submitted that, there is suppression of fact by the petitioner by not disclosing the writ petition filed before the Delhi High Court for the same subject matter. It was further submitted that there is no demand notice issued against the petitioner and therefore, there is no cause of action to file this petition. ANALYSIS: 8.1. Having considered the submissions made by the learned advocates for both the sides and having gone through the materials on record, the short question which arises for the consideration is whether the amendment made by the Notification No. 54/2018 dated 9th October 2018 amending subrule (10) of Rule 96 of the CGST Rules is valid or not. 8.2. In order to consider the issue of validity of the Notification No. 54/2018 substituting the sub­-rule (10) of Rule 96 of CGST Rules, it would be necessary to refer to the scheme of Advance Authorized Licenses. The G....
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....rovided further that notwithstanding anything contained hereinabove for the said authorisations where the exemption from integrated tax and the goods and services tax compensation cess leviable thereon under sub­-section (7) and sub­-section (9) of section 3 of the said Customs Tariff Act, has been availed, the export obligation shall be fulfilled by physical exports only;"; (c) after condition(xi), the following conditions shall be inserted, namely :­ "(xii) that the exemption from integrated tax and the goods and services tax compensation cess leviable thereon under sub­-section (7) and sub­-section (9) of section 3 of the said Customs Tariff Act shall be subject to pre­import condition; (xiii) that the exemption from integrated tax and the goods and services tax compensation cess leviable thereon under sub­-section (7) and sub­-section (9) of section 3 of the said Customs Tariff Act shall be available up to the 31st March, 2018." 8.4. Thus condition no. (xii) and (xiii) were inserted, whereby it was provided that the exemption from Integrated Tax and the Goods and Services Tax compensation Cess leviable thereon under sub&sh....
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....ub section(i), vide number G.S.R. 1272(E), dated the 13th October, 2017 or notification No.79/2017­Customs, dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, sub­-section (i), vide number G.S.R 1299(E), dated the 13th October, 2017." 8.7. Thus, sub­-rule (10) of Rule­ 96 was subdivided in two parts for the person claiming refund of integrated tax paid on exports of goods or services should not have received supplies on which the benefit of the Notification No. 48/2017 and availed benefit under Notification No. 78/2017 or 79/2017 dated 13th October 2017. 8.8. It appears that, thereafter, again both the clauses which were substituted by Notification No. 39/2018 were merged by Notification No. 53/2018 dated 9th October 2018 which reads as under: "Notification: 53/2018­C.T. dated 09­ Oct 2018 Central Goods and Services Tax Rules, 2018 - Eleventh Amendment of 2018 In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax R....
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....e benefit under Notification No. 78/2017 or Notification No. 79/2017. 8.10. It is pertinent to note that the Notification No. 54/2018 is made applicable retrospectively from the date when Rule­ 96 (10) of the CGST Rules came into force and not with effect from 23rd October 2017, as was amended in the previous Notifications. 8.11. Section 16 of IGST Act provides for 'Zero Rated Supply' and sub­clause (b) of sub section(3) of Section 16 provides that, a registered person making zero rated supply shall be eligible to claim refund, if he has supplied the goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied. 8.12. Thus on conjoint readings of the provision of Section 16 of the IGST Act, Section 54 of CGST Act and Rule­ 96 (10) of CGST Rules, which is substituted by Notification No. 54/2018 dated 9th October 2018, it is apparent that the person who has availed the benefits of Notification No. 48/2017 dated 18th October 2017 and other Notifications as stated in sub­-rule 10 shall not have the benefit of claiming refu....