In the recent judgement of M/s Garden Silk Mills Ltd. v. Union of India reported in 2019-TIOL-859-HC-AHM-GST, the Hon'ble High Court of Gujarat has held that petitioner may take the re-credit of ITC on the basis of Form GST PMT-03 issued by the department in their Electronic Credit Ledger at the time of filing of Monthly Summary Return – GSTR 3B due to non-availability of re-credit facility on the GST common portal.
In the present case, the petitioner is engaged in the manufacture of Polyester Filament based yarns, Textile grade Polyester chips, Grey fabrics and Finished fabrics. The products so manufactured were cleared for home consumption or to Special Economic Zones and exports without payment of IGST. Therefore, the petitioner filed six refund claims under section 54(3) of CGST Act, 2017. An order was passed in FORM GST RFD-01B for re-crediting the rejected refund claim in the Electronic Credit Ledger on the common portal on the basis of FORM GST PMT-03.
The issue raised was whether the petitioner can manually take the credit of the rejected refund claim, since there is no mechanism to recredit the rejected claim amount in the Electronic Credit Ledger on the basis of Form GST PMT-03 since the amount of refund claim filed by them is huge and they had also debited the same from the Electronic Credit Ledger and non-passing of the order is adversely affecting the working capital of the petitioner.
Hon'ble High Court of Gujarat observed that as per Rule 93 (2) of the CGST Rules, 2017, where any refund amount is rejected under rule 92, either fully or partly, the amount debited to the extent of rejection, shall be re-credited to the Electronic Credit Ledger by an order in Form GST RFD PMT-03. Further, the Explanation thereto says that for the purpose of this rule, a refund shall be deemed to have been rejected if the appeal is finally rejected or if the claimant gives an undertaking in writing to the proper officer that he shall not file an appeal. Additionally, court observed that the petitioner has not filed any appeal and has also agreed to undertake to not file any appeal against the order of rejected refund claims for making compliance with the provisions of Rule 93.
In view of the above observations, it was held that since no re-credit was made to the Electronic Credit Ledger due to non-availability of such facility on the GST common portal, therefore, the petition can manually take the credit in GSTR-3B of the rejected refund amount on the basis of FORM GST PMT-03.
