Page 105 - GSTL_ 28th May 2020_Vol 36_Part 4

2020 ] IN RE : VAACHI INTERNATIONAL PVT. LTD. 551
make refund claim against the zero rated supplies made without payment
of tax, is not tenable.
Further, the taxpayer stated that part of export turnover related to the nil
rated goods. Since the taxpayer is not basically eligible for claiming the re-
fund of unutilized tax credit against zero supply this aspect is not ad-
dressed.
2.6 Also as per Rule 89(2)(f) of Andhra Pradesh Goods and Services Tax
Rules, 2017.
“The application under sub-rule (1) shall be accompanied by any of
the following documentary evidences in Annexure 1 in Form GST
RFD-01, as applicable, to establish that a refund is due to the appli-
cant, namely -
A declaration to the effect that the Special Economic Zone unit
or the Special Economic developer has not availed the input tax
credit of the tax paid by the supplier of goods or services made
to a Special Economic Zone unit or a Special Economic Zone
developer.”
This rule was amended by Notification G.O.M.S. No. 179 (Andhra
Pradesh), dated 19-2-2019 and the clause was substituted as “a dec-
laration to the effect that the tax has not been collected from the
Special Economic Zone unit or the Special Economic Zone develop-
er, in a case where the refund is on account of supply of goods or
services or both made to a Special Economic Zone unit or Special
Economic Zone developer.
We would like to bring to your kind attention to the rules prior to
amendment wherein it was mentioned that suppliers to SEZ need to
give declaration from the SEZ unit that the SEZ unit has not
claimed input tax credit and this sub rule makes it clear that the
SEZ unit can claim input tax credit and the option to claim refund
of tax is open to both the SEZ unit and the supplier to the SEZ unit
haven’t claimed any input tax credit.
In reply to objection 2.6 it is submitted that the provision for refund
of utilized input tax credit is made available only to those taxpayers
who made supplies to SEZ unit or the developer, against LUT.
Further in Rule 89(2)(f) it has been clearly prescribed that the refund
application shall accompany a declaration to the effect that the Spe-
cial Economic Zone unit or the Special Economic Zone developer
has not availed the input tax credit of the tax paid by the supplier of
goods or services or both, in a case where the refund is on account
of supply of goods or services made to a Special Economic Zone
unit or a Special Economic Zone developer.”
Thus the facility of getting refund of tax paid is statutorily made available
to those taxpayers who made supplies to SEZ only, with payment of tax.
This is to ensure that the refund of tax paid is claimed only by the suppliers
to SEZ, on filing of declarations from their [SEZ] purchasers, to avoid du-
plicity of the claims, as there may be a situation where the SEZ unit gets
supplies of goods/services from multiple number of Vendor taxpayers,
spread over different places, and it is not possible for the department to

GST LAW TIMES  28th May 2020  105