Page 93 - GSTL_ 28th May 2020_Vol 36_Part 4

2020 ] IN RE : VAACHI INTERNATIONAL PVT. LTD. 539
supplies of goods/services from multiple number of Vendor taxpayers, spread
over different places, and it is not possible for the department to track their re-
fund claims, against the [supplies] made to such SEZ unit, with payment of tax.
Therefore, the contention of the taxpayer that the SEZ unit can also make refund
claim against the zero rated supplies made without payment of tax, is not tena-
ble.
7. Citing the above reasons and circumstances, the AA has rejected to-
tal refund claim of Rs. 20,97,104/-.
8. Thus, the assessing authority has passed refund rejection orders un-
der CGST & APGST Acts, dated 2-5-2019, by rejecting total refund amount of
Rs. 20,97,104/-.
9. Aggrieved by the above refund rejection orders passed by the as-
sessing authority, the appellant has preferred the present appeal and disputed
the rejection of refund of Rs. 20,97,104/-.
Grounds of Appeal :
10. The grounds of appeal filed by appellant in the appeal are extracted
hereunder;
1. For the impugned order suffers from mis-appropriation and/or incor-
rect appreciation of facts, and is violative of the natural justice, wrongful,
biased, erroneous and bad in law.
1.1 All the grounds for appeal is prayed herein are independent of each
other and is read without prejudice to each other and conjoined reading of
more than one ground for appeal may be done as requested and prayed.
The rejection confirmed by the adjudicating authority is against the estab-
lished principles of law.
1.1 Refund claimed filed by the appellant has been rejected solely on the
ground that as per Section 54(3)(i) read with Rule 89(2)(f) of the GST Law
(APGST Act, CGST Act), the provisions for refund of unutilized input tax is
available to only those taxpayer who made supplies to SEZ Unit or the De-
veloper not vice versa.
The relevant provisions of law are as under :
1.2 As per Section 54(3) of Central Goods and Services Tax Act, 2017,
Subject to the provisions of sub-section (10), a registered person may claim
refund of any unutilized input tax credit at the end of any tax period :
Provided that no refund of unutilized 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 both as may be notified by the Gov-
ernment on the recommendations of the Council :
Provided further that no refund of unutilised input tax credit
shall be allowed in cases where the goods exported out of In-
dia are subjected to export duty :
Provided also that no refund of Input Tax Credit shall be al-
lowed, if the supplier of goods or services or both avails of
GST LAW TIMES  28th May 2020  93