Breif Issue :

Facts  & Issue Of The Case :

The applicant is a partnership firm registered with GSTIN 29AAECN8103G1ZH involve in manufacturing of incense sticks, Dhoops, Air fresheners, Pooja kits. He is using raw materials such as raw agarbathis, aroma materials, packing materials like plastic granules, paper and paper board as inputs and services such as marketing and distribution service, manpower service, job work service and rental services, freight and forwarding services as input service  has filed an application under Section 97 of CGST Act, 2017, KGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs.5,000-00 each under the CGST Act and the KGST Act.

The applicant, seeking an advance ruling in respect of the following issue:

(a) Whether the applicant is eligible to claim refund of accumulated input tax credit on both inputs and input services where a scenario of inverted duty structure exists?

(b) Whether the provisions of Notification No. 21/2018-Central Tax dated April 18, 2018 and Notification No. 26/2018-Central Tax dated June 13, 2018 are applicable to the applicant?

the applicant filed additional submissions stating that the applicant had filed application before the appropriate jurisdictional authority seeking refund of taxes paid on both inputs and input services and the appropriate authority had rejected the claim of refund of taxes paid on input services by relying on Notification No. 21/2018-Central Tax prohibiting grant of refund of taxes paid on input services. He stated that nowhere in the rejection orders passed by the authorities, has a reference been made to the applicability or non-applicability of Notification No. 26/2018- Central Tax and  therefore the present application filed by the applicant is admissible.

The applicant argues that an application for advance ruling may be filed only if the matter has not already been adjudicated upon and in the instant case, since no reference has been made to Notification No.26/2018-Central Tax in any of refund proceeding pertaining to the applicant, the appellant seeks clarification regarding the applicability of the said notification.