2025-VIL-1180-GUJ
  1. Home
  2. 2025-VIL-1180-GUJ

SGST High Court Cases

GST – 100% EOU – Refund on Zero-rated supply - Exported of goods manufactured out of raw materials received on payment of tax, Deemed export or Zero-rated supply - Petitioner claimed refund under Section 54(3) of the CGST Act, 2017 on the basis that the export had been made without payment of tax - Petitioners also filed an undertaking that it had not purchased the goods without payment of tax under the deemed export Notification No.48/2017 dated 18.10.2017 and Circular No.14/2017 dated 06.11.2017 and the suppliers had not claimed the refund of such tax. The provisional refund was granted pursuant to the refund application but later on, Respondent issued the notice seeking to withdraw the refund already granted alleging that the tax paid on deemed exports would not be considered as input tax credit - Whether the refund claim filed by the petitioner was rightly disallowed by the respondents on the ground that the petitioners did not file the refund claim under Rule 89(4A) of the CGST Rules, 2017 – HELD – The petitioners-EOU filed refund claim in view of Notification No.48/2017 under section 54 r/w Rule 89(4). The supplier of the goods to the petitioners did not avail the input tax credit and refund was sanctioned by the authorised officer, which was later sought to be recovered - the petitioners are not the deemed exporters but are the exporter of the goods resulting into zero-rated supply as per section 16(1) of the IGST Act and all the inward supplies to the petitioners are made with payment of GST charged by the suppliers who have not taken benefit of any notification as deemed exporter. The suppliers have not shown such supplies as deemed export but the supplies have been shown as regular B2B supplies i.e. in regular form only. The suppliers of the goods to the petitioners have never followed the procedure as per Circular No.14/14/2017 dated 6.11.2017 nor any invoices are endorsed as an EOU unit by the petitioners as per the procedure prescribed in the said circular - Therefore, the zero-rated supplies made by the petitioners is not coming in the purview of the deemed exports because the petitioners have exported the goods and therefore, entitled to refund of the unutilised ITC as per the provisions of section 54(3) of the GST Act read with Rule 89(4) of the GST Rules - As the petitioners are exporters of the goods and has never claimed the input tax credit under Notification No.48/2017 as deemed exporter, para no.2.2 of clarificatory Circular No.172/04/2022-GST dated 06.07.2022 would not be applicable – The respondents were not justified in disallowing the refund claim of the petitioners on the ground that the petitioners did not file such claim under Rule 89(4A) of the CGST Rules. The respondents shall pay the refund as per the claims made by the petitioners – The petition is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?