The goods on which the credit is accumulated and the refund is claimed by the appellant is to be treated as inputs subject to verification of the invoices and books of accounts by the adjudicating authority.
Refund— In the instant case, the adjudicating authority has rejected the refund claim on the ground that the appellant has availed input tax credit on input services and capital goods which is not included in Net ITC for the purpose of refund amount as per Rule 89(5) of the CGST Rules, 2017 as amended vide Notification No. 26/2018-C.T., dated 13-6-2018 and not submitted the documents of inputs.
Whereas, appellant's submission is that initially they filed refund claim of ITC on input services along with inputs due to the ambiguity on the term 'input' referred to in the Section 54(3)(ii) of the CGST Act, 2017.
The issue involved in the present case is that whether the goods on which credit is accumulated and refund is claimed is 'input or capital goods', the appellant has submitted declaration dated 27-6-2018 regarding refund claim filed for the period July, 2017 to March, 2018 that it does not include any amount of Goods and Services Tax paid on procurement of inputs, which has been capitalized or treated as expense in their books of accounts.
Held that— if the goods whose value is not capitalized in the books of accounts and the expenditure which has been charged as revenue expenditure in the books of accounts cannot be treated as capital goods and is to be treated as inputs. These facts has to be verified from the books of accounts.
the goods on which the credit is accumulated and the refund is claimed by the appellant is to be treated as inputs subject to verification of the invoices and books of accounts by the adjudicating authority.
The goods on which the credit is accumulated and the refund is claimed by the appellant is to be treated as inputs subject to verification of the invoices and books of accounts by the adjudicating authority.
Refund— In the instant case, the adjudicating authority has rejected the refund claim on the ground that the appellant has availed input tax credit on input services and capital goods which is not included in Net ITC for the purpose of refund amount as per Rule 89(5) of the CGST Rules, 2017 as amended vide Notification No. 26/2018-C.T., dated 13-6-2018 and not submitted the documents of inputs.
Whereas, appellant's submission is that initially they filed refund claim of ITC on input services along with inputs due to the ambiguity on the term 'input' referred to in the Section 54(3)(ii) of the CGST Act, 2017.
The issue involved in the present case is that whether the goods on which credit is accumulated and refund is claimed is 'input or capital goods', the appellant has submitted declaration dated 27-6-2018 regarding refund claim filed for the period July, 2017 to March, 2018 that it does not include any amount of Goods and Services Tax paid on procurement of inputs, which has been capitalized or treated as expense in their books of accounts.
Held that— if the goods whose value is not capitalized in the books of accounts and the expenditure which has been charged as revenue expenditure in the books of accounts cannot be treated as capital goods and is to be treated as inputs. These facts has to be verified from the books of accounts.
the goods on which the credit is accumulated and the refund is claimed by the appellant is to be treated as inputs subject to verification of the invoices and books of accounts by the adjudicating authority.