This appeal has been filed under Section 107 of the CGST Act, 2017 (hereinafter also referred to as “the Act”) by Shri Sampat Singh Proprietor M/s. S.S. Stone, S-2. IInd Floor, Bharat Apartment, Gandhi Path, 176, Vidhut Nagar-C, Vaishali Nagar, Jaipur (Raj.) against the Refund Sanction/Rejection Order No. CGST/DIV-G/71/2019-20, dated 2-9-2019 (hereinafter referred to as “the-impugned order”) filed under Section 54 of the CGST Act, 2017 passed by the Deputy Commissioner, CGST Division-G, Jaipur (hereinafter referred to as “the adjudicating authority”).

The adjudicating authority vide impugned order has rejected the refund claim of IGST ₹ 10,10,890/-. CGST ₹ 6,74,725/- and SGST ₹ 6,74.725/- total amounting to ₹ 23,60,340/- for the period December, 2017 to March, 2018.

Brief facts of the case :-

2.1 That the appellant is registered under GST having GSTIN : 08ARJPS8332F1ZG and engaged in business of export of Sandstone, Slatestone and other Stone products had applied for refund vide Form RFD-01A under sub-section (3) of Section 54 of the CGST Act, 2017 of accumulated ITC for the period December, 2017 to March, 2018 on goods and services exported without payment of tax.

3.1 The adjudicating authority vide impugned Order No. CGST/DIV-G/71/2019-20, dated 2-9-2019 has rejected the refund claim of accumulated input tax credit of ₹ 23,60,340/- on the ground that

(1)     The appellant had generated ARN for NIL amount, as such no amount had been debited from their Electronic Credit Ledger, whereas the appellant was required to debit the amount of refund being claimed as per Rule 89(3) of the CGST Rules, 2017, as without debiting the amount of ₹ 23,60,340/- (as the same amount is not reflected in the electronically generated ARN & RFD-01A) from Electronic Credit Ledger the refund cannot be sanctioned.

4. Being aggrieved with the above impugned order, the appellant has filed appeal on the following grounds which are summarized as under :-

4.1 that our genuine ITC claim of ₹ 23,60,340/- has been rejected because of error in GST common portal which was not our fault and we unable to debit ITC ledger through Form GST DRC-03 because error in GST portal so rejection order must be cancelled and sanction our ITC claim of ₹ 23,60,340/-.

4.2 that we are the exporter and exported the goods and eligible to claim ITC refund available- in our electronic credit ledger. we have filed online application for refund claim in Form RFD-01A for the period December, 2017 to March, 2018 four months vide ARN No. AB0803180180859, dated 1-12-2018 but by mistake we have generated a NIL amount ARN and no amount was debited from our electronic ledger account.

4.3 that by mistake we have filed a NIL ARN No. AB0803180180859, dated 1-12-2018 because this online portal was a completely new and we made mistake, we tried to generate new ARN and cancel the existing NIL amount ARN but GST common portal does not allow to change or cancel or generate new ARN. For this we have filed complaint on grievance cell and help desk also and inform to O/o the Dy. Commissioner of CGST Dn G and O/o the Principal Commissioner but unable to change or generate new ARN.

4.4 that we have filed manual application for refund claim to O/o the Asstt. Commissioner. CGST Dn-G. After verification of all documents and personal hearing by the adjudicating authority a letter SCN No. V(CGST-G)/48/Ref-SSC/2019-20/7247, dated 2-8-2019 issued regarding Debit of ITC ledger by ₹ 23,60,340/- (IGST ₹ 10,10,890/-, CGST ₹ 6,74,725/- and SGST ₹ 6,74,725/-) through Form GST DRC-03. We tried to Debit amount from ITC ledger on GST common portal since we received letter but there was a problem and error which not allowed us to debit the amount from ITC ledger. Screen shots also submitted.

4.5 that we have filed the complaints on help desk vide ticket No. 201908196732382, 201908276814243 & 201909026862788 and also filed the complaint to Asstt. Commissioner, CGST Dn-G and O/o the Principal Commissioner, CGST but no solution were found so far.

4.6 that we unable to Debit our ITC ledger by ₹ 23,60,340/- (IGST ₹ 10,10,890/-, CGST ₹ 6,74,725/- and SGST ₹ 6,74,725/-) through Form GST DRC-03 while we have available balance in ITC ledger. This is the fault of GST common portal and our refund had been rejected.

4.7 The appellant vide letter Ref : SSC/GST(Appeal)/002/19-20, dated 20-11-2019 stated that now GST common portal has been rectified and we have filed Form GST DRC-03 and debited our Electronic Ledger by ₹ 23,60,340/- (IGST ₹ 10,10,890/-, CGST ₹ 6,74,725/- and SGST ₹ 6,74,725/-) vide ARN AD081119002254F, dated 20-11-2019 and enclosed copy of Form GST DRC-03 and requested to send back to the adjudicating authority with instruction of process the refund claim.

5. Personal hearing in the matter was held on 9-1-2020 Shri Sampat Singh. Proprietor M/s. S.S. Stone, S-2, IInd Floor, Bharat Apartment. Gandhi Path, 176, Vidhyut Nagar-C, Vaishali Nagar, Jaipur (Raj.) appeared for personal hearing. He explained the case in detail and also submitted the written submission dated 9-1-2020 and requested to decide the case at the earliest and instruct the adjudicating authority for process of refund claim as they have now Debited the amount vide FORM DRC-03, dated 20-11-2019 which is also available on records.

6. I have carefully gone through the case records, appeal memos and oral submissions of the appellant made during the course of personal hearing. I find that the adjudicating authority has rejected the refund claim of accumulated ITC (IGST ₹ 10,10,890/-, CGST ₹ 6,74,725/- and SGST ₹ 6,74,725/-) total amounting to ₹ 23,60,340/- mainly on the ground that the appellant had generated ARN for NIL amount, as such no amount had been Debited from their Electronic Credit Ledger, whereas the appellant was required to Debit the amount of refund being claimed as per Rule 89(3) of the CGST Rules, 2017.

7. Further, I find that the appellant was unable to Debit their ITC Ledger through FORM GST DRC-03 because of error in system, GST common portal did not allow to Debit the amount from their available balance in ITC ledger and for this they have made several complaints at various appropriate platforms i.e. help desk, vide Ticket No. 201908196732382, 201908276814243 & 201909026862788 and also filed the complaint to adjudicating authority and also O/o the Principal Commissioner, CGST but no solution were found. The appellant vide letter dated 20-11-2019 and on 9-1-2020 at the time of personal hearing has also submitted a letter Ref No. SSC/GST(Appeal)/019/19-20, dated 9-1-2020 stated therein that GST common portal has been rectified and they have filed FORM GST DRC-03 and Debited their electronic ledger by ₹ 23,60,340/- (IGST ₹ 10,10,890/-. CGST ₹ 6,74,725/- and SGST ₹ 6,74,725/-) vide ARN AD081119002254F, dated 20-11-2019 and submitted the copy of Form GST DRC-03 and the appellant also requested to send back the claim to the adjudicating authority for further process.

8. Keeping in view of above discussion and findings the appeal is disposed off with the direction that the appellant to submit FORM GST DRC-03 and other related documents before the adjudicating authority in order to verify the same and process the refund claim as per provisions of Section 54 of the CGST Act, 2017 and rules made thereunder.