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TMI Blog2022 (1) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... aim cannot be sanctioned in cash as per Rule 86 of CGST Rules, 2017 read with Circular No. 135/05/2020, dated 31-3-2020 - HELD THAT:- The appellant has filed the refund application GST-RFD-01 with ARN No. AA0807200379253, dated 16-7-2020 for the disputed period January, 2020 on account of Excess Payment of Tax - amendment in Rule 86(4)(A) and sub-rule (1)(1A) of Rule 92 of the CGST Rules, 2017 has been made and same was made effective from 31-3-2020 whereas, the period of refund claim in the instant case is pertains to the period of January, 2020. Thus, the amended rule is not applicable in the instant case. Appeal dismissed. - Order-in-Appeal No. 124 (MAA)CGST/JPR/2021 in Application C. No. APPL/JPR/CGST/JP/131/XI/2020 - - - Dated:- 21-5-2021 - Shri Manzoor Ali Ansari, Additional Commissioner (Appeals) ORDER This appeal has been filed under Section 107 of the Central Goods and Services Tax Act, 2017 by M/s. Seet Kamal Private Limited, 3A-Kamani Road, Jhotwara Industrial Area, Jaipur-302012 (hereinafter also referred to as the appellant ) against the Order-in-Original No. Z00807200440418, dated 28-7-2020 (hereinafter as the impugned order ) passed by the Assistan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he refund application of the Appellant with the only ground of rejection as appearing in Form GST RFD-06 is Refund claim cannot be sanctioned in cash as per Rule 86 of CGST Rules, 2017 read with Circular No. 135/05/2020, dated 31-3-2020 . The Appellant submits that the adjudicating officer has erroneously interpreted Rule 86 of CGST Rules, 2017 read with Circular No. 135/05/2020, dated 31-3-2020. The said Rule provides the issues related to Electronic Credit Ledger whereas the Refund sanction rules are provided in Rule 92 of CGST Rules, 2017. The Appellant submits that the Rule 92 of CGST Rules, 2017 has been amended vide CGST (Third Amendment) Rules, 2020, dated 23-3-2020 by way of insertion of sub-rule (1A) under Rule 92 which is reproduced below : (1A) Where, upon examination of the application of refund of any amount paid as tax other than the refund of tax paid on zero-rated supplies or deemed export, the proper officer is satisfied that a refund under sub-section (5) of section 54 of the Act is due and payable to the applicant, he shall make an order in FORM RFD-06 sanctioning the amount of refund to be paid, in cash, proportionate to the amount debited in cash agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been made through ITC. 4.3.1 As this could lead to allowing unintended encashment of credit balances, this issue has been engaging attention of the Government. Accordingly, vide Notification No. 16/2020-Central Tax, dated 23-3-2020, sub-rule (4A) has been inserted in Rule 86 of the CGST Rules, 2017 which reads as under : (4A) Where a registered person has claimed refund of any amount paid as tax wrongly paid or paid in excess for which debit has been made from the electronic credit ledger, the said amount, if found admissible, shall be recredited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03. 4.3.2 Further, vide the same notification, sub-rule (1A) has also been inserted in Rule 92 of the CGST Rules, 2017. The same is reproduced hereunder : (1A) Where, upon examination of the application of refund of any amount paid as tax other than the refund of tax paid on zero-rated supplies or deemed export, the proper officer is satisfied that a refund under sub-section (5) of section 54 of the Act is due and payable to the applicant, he shall make an order in FORM RFD-06 sanctioning the amount of refund to be paid, in cash, propor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Appeals to Appellate Authority. - (1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person. (4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month. 7. I find that in the instant case, the appeal in the prescribed Form GST APL-01 has been filed by the appellant on 23-11-2020 i.e. the delay of 26 days from the normal period of three months as per Section 107(1) of CGST Act, 2017. The reason for delay has been mentioned by the appellant in their appeal memo that the office of the authorized representative of the appellant was closed due to COVID-19 cases, hence the appeal could not be prepared in time. Further, the appellant also tried to file the appeal online on GST port ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T-03*. (4A) Where a registered person has claimed refund of any amount paid as tax wrongly paid or paid in excess for which debit has been made from the electronic credit ledger, the said amount, if found admissible, shall be recredited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03. (D) As per RULE 92 of the CGST Rules,2017 - Order sanctioning refund. - (1) Where, upon examination of the application, the proper officer is satisfied that a refund under sub-section (5) of Section 54 is due and payable to the applicant, he shall make an order in FORM GST RFD-06* sanctioning the amount of refund to which the applicant is entitled, mentioning therein the amount, if any, refunded to him on a provisional basis under sub-section (6) of Section 54, amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable : Provided that in cases where the amount of refund is completely adjusted against any outstanding demand under the Act or under any existing law, an order giving details of the adjustment shall be issued in Part A of FORM GST RFD-07*. (1A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n rule 92 of the CGST Rules, 2017. The same is reproduced hereunder : (1A) Where, upon examination of the application of refund of any amount paid as tax other than the refund of tax paid on zero-rated supplies or deemed export, the proper officer is satisfied that a refund under sub-section (5) of section 54 of the Act is due and payable to the applicant, he shall make an order in FORM RFD-06 sanctioning the amount of refund to be paid, in cash, proportionate to the amount debited in cash against the total amount paid for discharging tax liability for the relevant period, mentioning therein the amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable and for the remaining amount which has been debited from the electronic credit ledger for making payment of such tax, the proper officer shall issue FORM GST PMT-03 recrediting the said amount as Input Tax Credit in electronic credit ledger. 4.4 The combined effect of the above-mentioned changes is that any such refund of tax paid on supplies other than zero-rated supplies will now be admissible proportionately in the respective original mode of payment i.e. in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-3-2020, vide which sub-rule (4A) has been inserted in Rule 86 of the CGST Rules, 2017 as well as sub-rule (1)(A) of Rule 92 of the CGST Rules, 2017 and the same has also been clarified vide Para 4 of the Circular No. 135/05/2020, dated 31-3-2020, wherein the procedure for refund of tax paid on supplies, other than zero-rated supplies was provided. As per sub-rule (4A) of Rule 86 of the CGST Rules, 2017, read with Para 4 of Circular Supra, a taxpayer is entitled to refund of tax wrongly paid or paid in Excess (other than zero-rated supplies), in the same mode by which the tax liability was discharged, i.e. if the tax was paid by partly debited the credit ledger and partly by debiting the cash ledger, the refund shall be sanctioned in the same proportion. 13. On going through the above provisions, I find that the aforesaid amendment in Rule 86(4)(A) and sub-rule (1)(1A) of Rule 92 of the CGST Rules, 2017 has been made and same was made effective from 31-3-2020 whereas, the period of refund claim in the instant case is pertains to the period of January, 2020. Thus, I find that amended rule is not applicable in the instant case therefore, I do not find any force in the contention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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