TaxTMI 
TaxTMI 
2021 (7) TMI 1115
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....rungudi Division (respondent), Chennai South Commissionerate. Brief facts of the case 2. The appellants are engaged in providing services to its overseas customers. The appellants had filed a refund application for the month of May, 2018 and received provisional refund to the tune of Rs. 3,06,733/-. The respondent had issued a notice to Show Cause seeking to hold the refund sanctioned as erroneous and consequently demand the same along with applicable interest and penalty. The notice to Show Cause alleged that the period for which the refund claimed is May, 2018, whereas, the relevant payment was received only on 29-1-2019 which did not fall in the range of the relevant period. The respondent further observed that the appellant i....
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....pt in foreign currency rejected the refund claim of appellant. • Copy of Citi Bank Statement and Chartered Accountant Certificate are submitted in support of receipt of foreign exchange. The appellant further reiterated and the provisions of Rule 89 and produced copy of bank statement and CA certificate in support of their claim. They have also drawn attention to Para 12 of Circular No. 37/11/2018-GST F.No. 349/47/2017 Personal hearing 5. The appellants were heard through video conference on 21-12-2020. Shri R. Subramanian, Chartered Accountant represented the appellant and reiterated the written submissions. He has drawn attention to Para 12 of Circular No. 37/11/2018-GST in F.No. 349/47/2017 to drive home the po....
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....n for determining the quantum of refund. The relevant formula reads as follows : Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero rated supply of services) * Net ITC/Adjusted Total Turnover. I find herein that the dispute is confined only to the one ingredient of the formula Viz., 'turnover of zero rated supply of services'. The 'turnover of zero rated supply of services' has been defined as : "the value of zero rated supply of services made without payment of Tax under bond or letter of undertaking, calculated in the following manner, namely :- Zero rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and....
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....eceived during the relevant period for zero-rated supply of services' confined the scope only to such of those payments received during the relevant period for zero-rated supply of services as received against supply of services made only in that period. In other words, it is the prescription of the respondent that the payments for the export of services made in a particular period should have been received within that period itself However, it appears that the provisions of the said rule do not leave scope for such extrapolation. Simply put, what has to be considered is only the payments, if any, is received during the relevant period for zero-rated supply of services In the case of the appellant, the invoice for export of services for the....