TaxTMI 
TaxTMI 
TaxTMI 
2021 (11) TMI 935
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....challenge four orders, all dated 05.12.2019 (the impugned orders), passed by the Assistant Commissioner, Central Goods and Service Tax, Gangtok Division, Gangtok rejecting the four claims for budgetary support for four quarters filed by the petitioner under Notification No. 10(1)/2017-DBA-II/NER dated 05.10.2017 (notification dated 05.10.2017) for the period July, 2017 to June, 2018. 3. The impugned orders record that the petitioner has been assigned with the unique ID (UID) registration number UNQSBS11AAACG2207L1Z50001 upon validating them to be eligible for "Scheme of Budgetary Support under GST" (the scheme) in terms of CBEC Circular No. 1060/9/2017-CX dated 27.11.2017 (Circular dated 27.11.2017) read with Notification dated 05.10.2017. Thus, as rightly contended by Mr. Rahul Tangri, Learned Counsel for the petitioner, that the petitioner was eligible under the scheme is not in controversy. 4. The impugned orders records that the petitioner filed an application dated 02.11.2018 in terms of paragraph 7.1 of the scheme in the prescribed format claiming budgetary support for the quarters ending September, 2017, December, 2017, March, 2018 and June, 2018 in relation to supply of s....
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....BUDGETARY SUPPORT 7.1 The manufacturer shall file an application for payment of budgetary support for the Tax paid in cash, other than the amount of Tax paid by utilization of Input Tax credit under the Input Tax Credit Rule, 2017, to the Assistant Commissioner or Deputy Commissioner of Central Taxes, as the case may be, by the 15th day of the succeeding month after end of quarter after payment of tax relating to the quarter to which the claim relates. 7.2 The Assistant Commissioner or Deputy Commissioner of Central Taxes, as the case may be, after such examination of the application as may be necessary, shall sanction reimbursement of the budgetary support. The sanctioned amount shall be conveyed to the applicant electronically. The PAO, CBEC will sanction and disburse the recommended reimbursement of budgetary support. 8. BUDGETARY PROVISION AND PAYMENT OF AMOUNT OF BUDGETARY SUPPORT 8.1 The budgetary support shall be disbursed from budgetary allocation of Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry. DIPP shall keep such budgetary allocations on the disposal of PAO, CBEC. The eligible units shall obtain one time registration on t....
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....he application for budgetary support for the quarter shall also be undertaken manually by the jurisdictional Deputy Commissioner/Assistant Commissioner of the Central Tax. The sanctioned amount shall be credited to the bank accounts of the beneficiaries through the PFMS platform in a manner fully compliant with the direct transfer of the benefit to the account of the assesse. 9. The communication dated 27.11.2017 also provided the Standard Operating Procedure for the claims relating to the first quarter ending September, 2017 in paragraph 8 and 9 thereof. They are quoted below:- "8. Registration of the eligible units under the scheme (i) The application for registration under the scheme by the eligible units shall be submitted in triplicate in the format attached to this circular. The application shall be signed by the proprietor/partner/managing director of the eligible unit or by the person authorized by him in this behalf and support by the self-authenticated copies of the documents in support of information as per the application. The registration under GST is a necessary pre-requisite for the scheme. (ii) In case more than one eligible unit is operating under the same....
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....id by the eligible unit. The details relating to tax payment in cash and input tax credit availed, utilized including purchases made form a composition dealer during the quarter shall be available in the GST returns of the taxpayer, which are available on the CBEC GST application for verification of the application for the budgetary support filed by the unit. The closing of the credit after end of the quarter shall also be provided for verification by the Assistant/Deputy Commissioner. (iii) In cases where an entity is carrying out its operation in a State from multiple business premises, in addition to manufacture of specified goods by the eligible unit, under the same GSTIN as that of the eligible unit, the application for budgetary support shall be supported by additional information duly certified by a Chartered Accountant, relating to receipt of inputs (receipt from composition dealer to be indicated separately), input tax credit involved on the inputs or capital goods received by the eligible units vis-à-vis the inputs, input tax credit availed and specified goods supplied by the registrant under the given GSTIN. In such case, on the basis of additional information....
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.... is clear that registration under the GST is a necessary prerequisite for the scheme and the UID would be issued only after registration. It is also seen that an eligible unit could file an application for claiming budgetary support for the quarter ending September, 2017 only after allotment of the UID. On 12.12.2017 the petitioner made a manual application for registration under the scheme to the Respondent No. 3. The application is marked as annexure P-7 by the petitioner. According to the petitioner this application was filed by relevant documents for obtaining registration and UID under the scheme. It is seen that there is a stamp of the authority along with the date "12.12.2017" and signature thereon. The respondents in their counter affidavit do not specifically deny receipt of the application. However, an argument is sought to be made that if such an application is presumed to have been made even then the petitioner failed to follow up the application. Quite evidently, the manual application 12.12.2017, although permitted under the circular dated 27.11.2017, was not processed for registration by the respondents. 11. Faced with this situation, the petitioner made an online a....