2026-VIL-297-GSTAT-PUN
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SGST Tribunal

GST - Refund of tax on deemed exports under Section 2(39) of the CGST Act, 2017 - Second proviso to Rule 89(1) of CGST Rules - Appellant, a supplier to an EoU, filed a refund claim of tax paid on deemed export supplies – Rejection of refund on the ground that both the recipient and the supplier filed the refund applications. The Appellant relied on the undertakings of the recipient that it had not availed input tax credit and would not claim refund. Whether the refund of tax on deemed export supplies can be rejected on the ground that both the recipient and the supplier claimed refund of the same supplies - HELD - The refund on a deemed export supply may be claimed by the recipient or by the supplier, but not by both. The supplier may claim it only if the recipient does not avail input tax credit on such supplies and furnishes an undertaking that the supplier may claim the refund. The Appellant produced the monthly returns of the recipient in Form B with the undertaking for all five invoices, as well as the declaration that the recipient had not claimed any refund for these transactions. The Respondent did not dispute these documents, and both conditions of the second proviso to Rule 89(1) were met - The finding of the FAA did not identify any application by the recipient, its period or the invoices it covered, and did not deal with the undertakings and declaration. A finding that the recipient claimed refund of the same supplies, reached without any material, cannot be sustained - The refund is held admissible and the proper officer shall grant it together with interest, if any, admissible under Section 56 – The appeal is allowed - Time limit and clubbing of periods in refund claim of deemed exports - Section 54(1) of CGST Act - The refund application covered a period spanning three financial years but related only to five supplies made between December 2023 and May 2024. The proper officer rejected the application as beyond the period of two years - Whether the refund claim is barred by limitation and whether tax periods across financial years can be clubbed - HELD - The restriction on bunching of refund claims across financial years does not apply, as the same was withdrawn by the Circular No. 135/05/2020-GST dated 31.03.2020, and the Respondent also acknowledged that tax periods in different financial years may be clubbed. For deemed exports, the relevant date is the date on which the return relating to such supply is furnished, and it is thus fixed for each supply by reference to the return relating to it. No return relating to these supplies could have been furnished before the first day of January 2024, and the application was therefore within two years. The contention that limitation must be tested on the entire period entered in the application finds no support in Section 54 - The grounds of multiple financial years and limitation do not survive - Non-submission of Form A in refund claim of deemed exports - Circular dated 06.11.2017 - The proper officer rejected the refund on the ground that the Appellant had not submitted Form A of the recipient. Whether the refund can be rejected for non-submission of Form A - HELD - The Circular requires the recipient unit to give prior intimation in Form A, before the supplies are made, to the supplier, to the jurisdictional GST officer of the supplier and to its own jurisdictional GST officer. The Appellant produced the Form A of the recipient addressed to the jurisdictional officers of both the recipient and the supplier, and its e-mail forwarding the same to the Deputy Commissioner. Both precede the first supply. The Respondent did not dispute that the FAA had accepted that the pre-intimation was filed with the proper officer - The ground of non-submission of Form A does not survive, and the refund cannot be rejected on this ground.
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