A supplier availing drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of Central tax
Refund— In the instant case, appellant is engaged into the business of manufacturing and trading of handicraft items. The appellant had applied for the refund of unutilized ITC and exported the goods on the zero rated supplies made under Section 16 of the IGST Act, 2017.
The refund was rejected on the ground that the appellant has claimed DBK in Group A and also not submitted invoices relating to ITC of IGST.
it is amply clear that the appellant has claimed drawback of custom component only in relation to Invoice No. 17/021 and 17/025 and has rightly availed ITC in respect of the good exported under the above invoices and therefore the refund is admissible and cannot be rejected on account of incorrect allegation of claiming higher rate of drawback.
Held that— Circular No. 37/11/2018-GST in F. No. 349/47/2017-GST, dated 15-3-2018 has also clarified that a supplier availing drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of Central tax/State tax/Union territory tax/Integrated tax/Compensation Cess under the said provision.