TaxTMI 
TaxTMI 
2021 (8) TMI 1021
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to September- 2019 Refund rejected Rs. 2,13,389/-. 2. BRIEF FACTS OF THE CASE: 2.1 The appellant having GSTIN No.08ABIFS6120Q1ZM has filed refund application vide ARN No. AA0809200407365 dated 18.09.2020 under Section 54 of CGST Act, 2017 in respect of ITC on export of goods and services without payment of Tax for the period and amount are mentioned in Para (1) above in column No. (4) & (5). 2.2 On examination of refund claim filed by the appellant, the adjudicating authority observed and has issued a show cause notice in Form GST-RFD-08 dated 09.10.2020 on account of the following reasons: 1. As per Statement-3 (Shipping Bill Statement), GSTR-3B & 1, the Zero rated turnover is Rs. 2,89,44,004/- and adjusted total turnover is Rs. 4,17,91,104/-. 2. Further, 2 invoices (EOPL/PRO/001 dated 25.06.2020 & EOPL/ INV/0014 dated 25.06.2020) are not reflecting in GSTR 2A, therefore, Net ITC is Rs. 12,90,082/- 3. Accordingly, maximum refund amount recalculated is Rs. 8,93,495/- (2,89,44,004/4,17,91,104 * 12,90,082). 2.3 Further, the adjudicating authority has rejected the refund claim vide RFD-06 dated 28.10.2020 on the ground that "on verification R....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 13,09,623.00/4,19,77,385.81 = Rs. 12,60,432.22 BUT OUR CLIENT HAVE CLAIMED ONLY REFUND OF Rs. 11,20,418.00 That the above figures of Sales can be verified from the Invoice wise Statement (Page No. 1 of Paper Book) THUS THE LEARNED ASSESSING AUTHORITY ASSISTANT COMMISSIONER DIVISON C, JAIPUR GROSSLY EARRED IN DISALLOWING THE REFUND CLAIM OF Rs. 213389/-. 2. That ITC is disallowed to the extent on turnover of Sale of Services of Rs. 1,14,56,668.02 for the purpose of grant of refund:- THAT THE GOVERNMENT HAVE MADE Extension FOR IGST exemption on services by way of transportation of goods by air or by sea from customs station of clearance in India to a place outside India, by one year i.e. upto 30.09.2021 VIDE Integrated Tax (Rate) NOTIFICATION NO. 04/2020- dt 30-09-2020. THAT OUR CLIENT HAVE NOT AVAILED THE INPUT CREDIT ON services by way of transportation of goods by air or by sea from customs station of clearance in India to a place outside India (IE OCEAN FREIGHT), THUS NO QUESTION OF DISALLOWANCE ARISES on prorate on sea freight Received of Rs. 1,14,56,668.02 in foreign Currency. 3. That the learned AO has wrongly interp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent in the instant case, hereunder- A. Section 54 of the CGST Act, 2017 provides that :- Refund of tax.,-(1) Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed: Provided that a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim such refund in the return furnished under section 39 in such manner as may be prescribed. (2).... (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 of goods or services or bot....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Adjusted Total Turnover. Where- (A) "Refund amount" means the maximum refund that is admissible; (B) "Net ITC" means input tax credit availed on inputs and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; (C) Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking or the value which is 1.5 times the value of like goods domestically supplied by the same or, similarly placed, supplier, as declared by the supplier, whicheVer is less, other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both; (D) "Turnover of zero-rated supply of services" means 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 zero-rated supply of services whe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....T dated 18.11.2019 has also clarified as under:- - that where the value of the goods declared in the GST invoice and the value in the corresponding shipping bill/bill of export should be examined and the lower of the two values should be taken into account while calculating the eligible amount of refund. 7. I find that with reference to the refund claim filed, the appellant was issued notice for rejection of application for refund in Form GST-RFD-08 dated 09.10.2020 to the extent of Rs. 226923/- _and after providing opportunity to justify their concern, the Refund sanction order in form GST-RFD-06 dated 28.10.2020 was issued to admitting refund of Rs. 9,07,029/- and rejecting Rs. 2,13,389/- as inadmissible amount. 8. I also observed that the adjudicating authority while processing of refund claim has taken a value of zero rated turnover is Rs. 2,89,44,004/- and adjusted total turnover as Rs. 4,17,91,104/-whereas the appellant has contested that the Turnover of zero-rated supply of goods to be Rs. 2,89,44,004.19 and Turnover of zero-rated supply of services as Rs. 1,14,56,668.02/- leading to eligible refund amount to be Rs. 12,60,432.22 against their refund claim of R....
X X X X Extracts X X X X
X X X X Extracts X X X X
....so observed that in Para 9 of Circular No.37/11/2018-GST, dated 15.03.2018 it has been clarified that in the event of " Difference between values of GST invoice and Shipping Bill, lower value of the two values between GST invoice and Shipping Bill will be considered for sanctioning of GST refund. Further, I also find that during the Audit of such cases of refund, the Comptroller of Accountant General (CAG) has also taken the view that where FOB value is lower than invoice value, the FOB value should be taken for calculation of refund amount. Further, CAG vide DAP No.57/GST/2019-20 has made certain observations that "there have been cases in field formations where sanction of refund for zero rated supplies (made without payment of tax) has been made considering invoice bill value of its supplies instead of the value (FOB) of therein corresponding shipping bills even when Shipping Bill (FOB) value of the supplies was lower than the corresponding invoice value thus this resulted in excess payment of refund." Therefore, the GST Policy Wing vide its letter CBEC-20/16/34/2019-GST dated 10.11.2020 has conveyed to all the field officers for taking appropriate action in this ....