Page 98 - GSTL_ 28th May 2020_Vol 36_Part 4

544 GST LAW TIMES [ Vol. 36
The Ld. Adjudicating Officer hasn’t specified any reason un-
der the foregoing provisions why the SEZ unit is not eligible
to take claim of refund of unutilized input tax credit.
The appellant submit before the Learned Appellate Joint
Commissioner that, the appellant is eligible to take claim of
input tax credit as per the relevant provisions of Andhra Pra-
desh Goods and Services Tax Act, 2017. Further, the IT Infra-
structure maintained by the Goods & Service Tax Infrastruc-
ture Network allows the SEZ unit to seamlessly claim the in-
put of tax paid on procurement or availment of supplies from
the Domestic Tariff Area.
(b) The Second aspect - “Is the declaration mentioned in Rule
89(2)(f) of Andhra Pradesh Goods and Services Tax Rules,
2017 restricts the ab initio eligibility of SEZ unit to claim input
tax credit?” - has been dealt as follows :-
The appellant retreat before the Learned Appellate Joint
Commissioner that the Rule 89(2)(f) specifically says that dec-
laration will be required from SEZ unit that no input tax credit
(“ITC”) has been claimed by the SEZ unit, We would like to
place a common question that why a declaration is required?
In the common parlance of law, a declaration is given by the
declaring party to confirm and declare to best of his/her
knowledge that the declaring party has refrained from doing
the matters as declared in the said declaration. Only when the
declaration is given, the declaring party limits its action and
eligibility itself to do or enjoy the matters in the said declara-
tion. In case, the declaring party was not eligible to claim ITC,
then why the declaration is sought after all?
In the instant case, the supplier to the SEZ unit applying the
refund of tax paid on supplies to SEZ unit need to obtain dec-
laration from the SEZ unit that the SEZ unit has not claimed
any ITC in their return. Such declaration is required as to
check that there is no duplicity of refund claim - viz., (a) the
refund application filed by the supplier of the SEZ unit of tax
paid on supplies to SEZ; and (b) the refund application filed
by the SEZ unit to claim refund of unutilized ITC.
There are two ways of making supplies by the person located
in Domestic Tariff Area (“DTA”) to SEZ unit. Firstly, the DTA
unit can make supply to SEZ unit on payment of tax. Second-
ly, the DTA unit can make supply to SEZ without paying tax
under Letter of

Sl. Party Name GST No. Total Taxes
No. Paid
1 Sai Ganapathi 37BQMPK5783R1ZN 4,02,081.20
Traders
2 Apl (India) Pvt. 37AAECA1501B1ZJ 3,60,040.40
Ltd.
3 Agarwai Sales 19ACXPA1113H1ZR 2,92,505.40
Corporation
GST LAW TIMES  28th May 2020  98