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TMI Blog2019 (1) TMI 1854X X X X Extracts X X X X X X X X Extracts X X X X ..... ther person s liability is available in the form of Cenvat credit. Hence, the adjudicating authority has correctly rejected the claim of the appellants on this issue and there are no infirmity in the impugned order. Rejection on the ground that they had balance in TRAN-1 by the end of the quarter i.e. July, 2017 to September, 2017 - HELD THAT:- The Scheme of Budgetary Support was introduced by the Ministry of Commerce and Industry vide their Notification dated 5-10-2017 followed by the Central Board of Excise Customs Circular dated 27-11-2017 whereunder it has been made amply clear that the said scheme has been worked out on quarterly basis for which claims shall be filed on a quarterly basis - In view of the provisions of the Scheme it is quite evident that the refund under budgetary support can only be filed after the end of the quarter from the tax amount paid in cash once the entire credit is exhausted and not on monthly basis as has been pleaded by the appellant in the grounds of appeal. Moreover, it is found that even the jurisdictional Range Officer in his report has categorically mentioned that at the end of the quarter the appellant had balance in their credit accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed the claim as per proforma provided in the Central Board of Excise and Customs Circular No. 1060/9/2017-CX, dated 27-11-2017. 3. As per the provisions of Circular No. 1060/9/2017-CX, dated 27-11-2017, the appellants filed request for registration under Budgetary Support with the Assistant Commissioner, GST Division Baddi. It was, inter alia, stated that they had filed declaration with the then Deputy/Assistant Commissioner, Central Excise Division, Shimla on 27-3-2009, opting for exemption in terms of Notification No. 50/2003-C.E., dated 10-6-2003, mentioning wherein it had been mentioned that the date of commencement of commercial production of the unit w.e.f. 30-7-2009 had been taken on record. Accordingly, in terms of Board s Circular dated 27-11-2017, Registration No. 04/GST Baddi/GST Shimla/02AAECM5320Q1ZG was issued to the appellants. 4. The jurisdictional Range Officer vide his report dated 22-6-2018 had reported that the appellants were eligible for budgetry support for specific goods and verified the refund claim. The range officer further reported that the budgetary support in respect of tax paid on RCM was not available. Therefore, net IGST payable in cash co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t ledger at the end of the quarter July-September, 2017, The ground was not correct as the balance lying after filing of return for the month of September was because of TRAN credit as per the provisions of the GST laws in respect of transitional credit. That the appellants had utilized the entire credit available while filing return for the month of July, 2017 and August, 2017 and paid the balance amount in cash. Accordingly, the appellant should be allowed the refund of the amounts paid in cash as per the scheme of budgetary support. That input credit available at the end of the quarter was mainly due to TRAN credit taken by the appellant on 26 September, 2017 which was not available for utilization in the month of July August, 2017 to settle the Liability. That the amount of refund claim filed by the appellants primarily pertains to tax paid by the appellant for the month of July, 2017 and August, 2017, Accordingly, the same was a hardship on the appellants that despite paying tax on time and complying to all the provisions of the law, the amount of refund had been disallowed by the tax authorities merely due to procedural defects in the manner of scheme of refunds i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 7,01,058/- and rejected the claims of ₹ 13,76,741/- for the quarter July, 2017 to September, 2017 on the two issues. The adjudicating authority has sanctioned the provisional budgetary support to the appellant in terms of the para (vi) of para 9 of the Circular No. 1060/9/2017-CX, dated 27-11-2017 since no inspection report was received from the DIPP in this regard. 10. Regarding first issue where refund of the appellants was rejected by the adjudicating authority I find that the Government of India vide Notification No. 10/2017-Integrated Tax (Rate), dated 28th June, 2017 notified the payment of IGST on reverse charge basis i.e. for certain category of supply of services tax liability has been shifted on the recipient of services to be paid in cash and under the said scheme the tax paid can be claimed as credit in their book of accounts for utilising the same for discharging their outward tax liabilities. Hence, I observe that the tax paid under Reverse Charge Mechanism cannot be treated as duty paid under the forward charge i.e. outward tax for claiming the refund of the same under the scheme of Budgetary Support. As such the plea of the appellant does not hold goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im of the appellant in view of the provisions laid down in the scheme of budgetary support ibid. I do not find any infirmity in the impugned order and the same is upheld. As such the plea of the appellant mentioned in the grounds of appeal that on monthly basis they had no credit balance during the month of July 17 August 17 is not tenable inasmuch as the refund under the scheme has to be assessed in view of the prescribed procedure i.e. the refund application is to be made on quarterly basis and accordingly refund is to be sanctioned on quarterly basis only. 13. Further, the appellant has pleaded that the amount of credit which was appearing at the end of the quarter primarily due to Transitional credit which had been subsequently utilized by the appellants in the future tax payments and accordingly, reduced the refund for the quarter ended 31 December, 2017, does not hold good because for any reason once the balance of credit figures out in the records of the appellant, the tax in cash during the said quarter is to be paid only once the entire credit has been exhausted in view of the provisions of the Scheme of Budgetary support. The refund has been correctly rejected by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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