2021 (4) TMI 783

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....l Nos.79 to 81 of 2018. The 3rd refund claim filed on 30.10.2017 for the exports made during April 2017 to June 2017, the respondent has allowed the claim vide Order-in-Original No.81 of 2018. 3. However, the corresponding refund claims filed on 07.09.2017 and 21.09.2017, the respondent has rejected the claims vide order in Original Nos.79 of 2018 and 80 of 2018. The said refund claims have been rejected with the following observations:- 23. I find that there are no recoverable arrears free from restrains pending against the claimant for realization:- 24. Having verified the parameters stipulated under Rule 5 of CENVAT Credit Rules, 2004 and notification issued therein, I now proceed to discuss the verification made with regard to the condition stipulated under Rule 2(h) of Notification No.27/2012-CE(NT) dated 18/06/2012 as amended. The said condition is reproduced below: (h) the amount that is claimed as refund under rule 5 of the said Rules shall be debited by the claimant from his CENVAT credit account at the time of making the claim. In the instant refund claim, the claimant has not debited the amount that is claimed as refund before or at the time of making the claim.....

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....une 17. Many a times, the details are furnished in the remarks column by the tax payers, which the claimants have not resorted to. All the more, the claimant has raised this issue only as a defence and appears that they have not raised the same at the time of filing of return or thereafter. Further, had there been such issues in the ST-3 return for April- June 2017, definitely the trade and industry would have raised the same before the appropriate authorities and in the absence of any clarifications, circulars, instructions etc, in this regard, i observe that the claimant's contention in this regard is not acceptable. 4. The case of the petitioner is that the reasons given by allowing the refund claim on 25.10.2018 for the period from April 2017 to June 2017 for a sum of Rs. 1,65,14,132/- has to be adopted and therefore, the writ petitions are liable to be allowed. 5. It is submitted that the total value of Input Tax credit which was un-utilized was Rs. 6,62,67,726/- which was not taken into GST Account by following the transfer application and therefore the petitioner was entitled to refund claim of the amount even though the petitioner could not debit the duty in the ST-3 ....

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....018 with the following observations:- "36.2 With regard to compliance of the said two conditions, I find that due to the implementation of GST with effect from 1/7/2017, the claimants filing refund under Rule 5 of CCR, 2004 for the quarter Apr-June 2017 has been left with only two options:- i) Debit the refund claimed in their Apr-Jun 2017 ST-3 return or ii) Not debit the refund claimed in the said return and also not carry the balance forward in their TRAN-1 or not to file TRAN-1 at all. If the claimant chooses option i) they will comply with the condition 2(h) of Notfn No.27/2012-CE(NT) but will be hit by condition 2(g) because the balance comes to NIL at the end of the quarter. By choosing option ii) the claimant fails to comply wit condition 2(h) but will not be hit by condition 2(g). It is seen that either way compliance of both the conditions together is not possible. Therefore, a judicious reading of the Notification makes it amply clear that the safeguards, conditions and limitations are prescribed not to deny the rightful claims of the claimant but to ensure that no claimant unduly enriches themselves by claiming refund from the Government as well as carry their ba....

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....ith appropriate interest and penalty as per the provisions of Finance Act 1994 read with CENVAT Credit Rules 2004." 37. M/s VCMC & Associates, Chartered Accountants of BNP Paribas Global Securities Operations Private Limited have certified the following:- 1) They have verified returns filed by the Company under Service Tax and GST regulations for the limited purpose of issuing the certificate. 2) As on 30th June 2017, the closing balance of service tax, as per ST-3 for the period April 2017 to June 2017, is INR 66,267,726/-. The closing balance in the ST-3 represents the amount of refund to be claimed for the subsequent quarters. 3) The refund claim for April 2017 - June 2017 quarter amounting of INR 1,65,14,132/- and for the subsequent periods was not submitted as on 30th June 2017. 4) As per Notification No.27/2017 C.E. Dated 18th June 2012, at the time of filing the refund claim, the Company has rightly reversed the refund claim amount in the books of accounts of the Company on 28th September 2017. 5) They have verified that company has not carried forward this closing CENVAT credit into the Electronic Credit Ledger of GST while filing Form TRAN-1. The Company has ....