Page 94 - GSTL_ 28th May 2020_Vol 36_Part 4

540 GST LAW TIMES [ Vol. 36
drawback in respect of Central Tax or claims refund of the in-
tegrated tax paid on such supplies.
1.3 Further as per Section 16 of Integrated Goods and Services Tax Act,
2017,
(1) “zero rated supply” means any of the following supplies of
goods or services or both, namely :-
(a) Export of goods or services or both; or
(b) Supply of goods or services or both to a Special Econom-
ic Zone developer or a Special Economic Zone unit.
(2) Subject to the provisions of sub-section (5) of Section 17 of the
Central Goods and Services Tax Act, credit of input tax may
be availed for making zero rated supplies; notwithstanding
that such supply may be an exempt supply.
(3) A registered person making zero rated supply shall be eligible
to claim refund under either of the following options,
namely :-
(a) He may supply goods or services or both under bond or
Letter of Undertaking, subject to such conditions, safe-
guards and procedure as may be prescribed, without
payment of integrated tax and claim refund of unutilized
input tax credit; or
(b) He may supply goods or services or both, subject to such
conditions, safeguards and procedure as may be pre-
scribed, on payment of integrated tax and claim refund
of such tax paid on goods or services or both supplied, in
accordance with the provisions of section 54 of the Cen-
tral Goods and Services Tax Act or the rules made there-
under.
1.4 Further Section 2(5) of the Integrated Goods and Services Tax Act,
2017 defines “export of goods” as “export of goods” with its grammatical
variations and cognate expressions, means taking goods out of India to
place outside India.
As per Section 2(56) of the Central Goods and Services Tax Act, 2017, “In-
dia” means the territory of India as referred to in Article 1 of the Constitu-
tion, its territorial waters, seabed and subsoil underlying such waters, con-
tinental shelf, exclusive economic zone or any other maritime zone as re-
ferred to in the Territorial Waters, Continental Shelf, Exclusive Economic
Zone and other Maritime Zones Act, 1976 (80 of 1976), and the air space
above its territory and territorial waters.
1.5 In perusal of the above Sections the appellant is primarily involved in
exporting dried ornamental plant, materials and candles and as per the def-
inition of Zero-rated supply cited above the appellant falls under the defini-
tion of Zero-rated supply under category (a) of sub-section (1) of Section 16
of IGST Act. The appellant is a SEZ Unit and the supplies made to the SEZ
unit are used for exporting goods. The suppliers of SEZ unit also falls under
the definition of Zero-rated supply under category (b) of sub-section (1) of
Section 16 of IGST Act.
The appellant is claiming refund under “Refund of ITC on Export of Goods
and Services without payment of Integrated Tax”. Since the appellant is in-
volved in zero-rated supplies made without payment of tax they are eligi-
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