Appellant has claimed drawback of custom component only and has rightly availed ITC in respect of the good exported and therefore the refund is admissible and cannot be rejected on account of incorrect allegation of claiming higher rate of drawback.
Refund- Brief facts of the case are that the appellant is registered under GST and engaged into the business of manufacturing and trading of ceramic handicraft items. That the appellant had applied for the refund under sub-section (3) of Section 54 of the CGST Act, 2017 of unutilized ITC.
The amounts of refunds were rejected on the ground that the appellant has claimed higher drawback under column A of drawback schedule and also refund of credit found inadmissible under Section 17(5) of CGST Act, 2017.
Held that- It is clarified that if a supplier avails of drawback in respect of duties rebated under the Customs and Central Excise Duties Drawback Rules, 2017 he shall be eligible for refund of unutilized input tax credit of Central tax/State tax/Union Territory tax/Integrated tax/Compensation Cess. It is also clarified that refund of eligible credit on account of State tax shall be available if the supplier of goods or services or both has availed of drawback in respect of Central tax.
I allow the appeals filed by the appellant only to the extent of rejection of refund of IGST and CGST on account of higher drawback under column A of drawback schedule.