Order Date – 03 February 2023

Parties: M/s Se Forge Limited Vs Union of India

Facts –

• The Petitioner, M/s Se Forge Limited, is a SEZ unit, has received supplies from non-SEZ suppliers wherein some suppliers levy the Integrated Goods and Services Tax (IGST). 
• The petitioner filed refund application in Form GST RFD-01 on 28.9.2020 and 12.03.2021 for the period of September 2018 to December 2019 and January-2020 to November-2021 in relation to unutilized Input Tax Credit. The refund claimed filed on 28.09.2020 was rejected and Provisional Refund Order was issued for refund filed on 12.03.202.
• A show cause notice was in issued FORM GST RFD-08 dated 28.4.2022 on the ground that the Provisional Refund Order was erroneously granted.

Issue – 

• Whether the petitioner is entitled to refund?

Order –

• The divisional bench of Hon’ble High Court observed that while claiming the refund, Petitioner has specified that the supplier had not claimed the refund and furthermore, if any such eventuality is noticed, it has taken the responsibility for the refund of amount.
• This is squarely covered by the decision of this Court in M/s. Britannia Industries versus Union of India, in which the Court has not upheld the stance of the department that the petitioner would not be entitled to seek the refund of the ITC paid in connection with the goods or services supplied to the SEZ unit.
• Hence, the petition is allowed directing the respondent to refund the amount.