Crystal Overseas Vs Union of India & Ors (High Court Bombay)
Bombay High Court held that registered person making a zero rated supply under LUT may claim refund of unutilized credit including that of Compensation Cess. Accordingly, refund of compensation cess granted and appeal is accordingly allowed.
Facts- The Petitioner is a partnership firm registered under the GST Law and having its principal place of business within the jurisdiction of Mumbai in the State of Maharashtra. It is inter alia engaged in the business of exporting beverages out of India. The Petitioner had purchased the said beverages from local manufacturers. The supply of certain beverages attracts GST as well as Compensation Cess u/s. 8 of the Compensation Cess Act.
Thereafter, the Petitioner made exports of the said beverages in the month of April 2021. According to the Petitioner, the said exports under the aforesaid invoices were made under a Letter of Undertaking (“LUT”). Thus, according to the Petitioner, the said exports qualify as zero rated supply of goods u/s. 16 (1) of the Integrated Goods and Services Tax Act, 2017. Accordingly, the Petitioner filed a Refund Application of the accumulated input tax credit for the period of April 2021 vide RFD-01 dated 11thJune 2021. Respondent granted refund of CGST and SGST and did not granted refund of compensation cess.
