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TMI Blog2024 (8) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... upply can be fixed on the date when the invoice for such supply is prepared and sent by the supplier or on the date on which the payment for such supply is made by the person receiving such goods. However, the legislature has also stipulated that the earlier of these two eventualities would be treated as the time of supply for the purpose of assessment of tax - the time of continuous supply of goods is not relevant and it is only the point of time when the invoice is raised or price is paid, whichever is earlier, that would be relevant for determining the point of tax in time and consequently, the period of supply of goods for which an invoice is raised should be taken into account, rather than the point of time at which the invoice has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Raghavan Ramabadran, learned counsel appearing on behalf of Sri Lakshmi Kumaran Sridharan, learned counsel for the petitioner and Sri Y.N. Vivekananda, learned counsel for the respondents. 3. The petitioner generates electrical power and sells the same to its customers. For the period January 2022 to October 2022, the petitioner had been selling/supplying electricity to M/s. Bangladesh Power Development Board. The petitioner, contending that such supply of electricity would amount to an export sale, which is exempted from tax under the Integrated Goods and Services Tax Act, 2017 (herein referred to as IGST Act ), had sought refund of the input tax credits available to the petitioner for these months. 4. The petitioner had filed separate a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued a show cause notice requiring the production of bill of shipping, amended the said notice and called upon the petitioner to produce the REA account maintained by the Regional Load Dispatch Center for processing the applications. Consequently, the petitioner produced the said REA account for the periods January 2022 to October 2022. However, these applications were rejected by the 2nd respondent by various orders. The 2nd respondent took the view that Rule 89 of the CGST Rules requires the dealer to place necessary materials such as input tax credit, turnover of zero rated supply of goods, adjusted total turnover, etc. for the relevant period . He also took the view that the relevant period would be the month for which the refund is sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clear and unambiguous and it is only the REA for the month for which refund is being sought that can be looked into for deciding whether a refund is payable or not. He would submit that as the petitioner had not filed the REA for the relevant period, the order of rejection cannot be faulted. Consideration of the Court: 10. A brief review of the provisions of law would be necessary before going into this question. The CGST Act provides for taxation of supply of sale of goods and supply of services of various kinds. One such category would be continuous supply of goods or continuous supply of services. The term continuous supply of goods is defined under Section 2 (32) of the CGST Act as follows: (32) continuous supply of goods means a su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said supplier, be the date of issue of invoice in respect of such excess amount. Explanation 1.-- For the purposes of clauses (a) and (b), supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment. Explanation 2.-- or the purposes of clause (b), the date on which the supplier receives the payment shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier. (3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dates, namely:-- (a) the date of the receipt of goods; or (b) th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for such supply is prepared and sent by the supplier or on the date on which the payment for such supply is made by the person receiving such goods. However, the legislature has also stipulated that the earlier of these two eventualities would be treated as the time of supply for the purpose of assessment of tax. Section 12 (2) also states that the point of time when the invoice can be raised would have to be in accord with the Section 31 (4) of the CGST Act, which reads as follows: (4) In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received. 13. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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