GST Update: Refund of education cess and secondary and higher education cess lying unutilized as on 30-6-2017 is admissible and payable in cash

[2021] 132 taxmann.com 165 (Ahmedabad - CESTAT)[09-11-2021]

 

GST Update:

Refund of education cess and secondary and higher education cess lying unutilized as on 30-6-2017 is admissible and payable in cash

CESTAT, AHMEDABAD BENCH

Atul Ltd. vs. Commissioner of Central Excise & Service Tax-Vadodara-II

·       Refund - Cenvat credit of Education Cess - Balance of Education Cess (E-Cess) and Secondary and Higher Education Cess (SHE Cess) lying unutilized –

·       Refund claim filed for such cess on implementation of Goods and Services Tax –

·       E-Cess and SHE Cess were leviable till 28-4-2015 and not thereafter –

·       Cenvat credit of such cess paid on inputs or capital goods received in the factory on or after 1-3-2015 can be utilized for payment of excise duty as per Notification No. 12/2015-C.E. (N.T.) –

·       Accumulated credit of cess could not be utilized till 30-6-2017 by appellant –

·       Unutilised credit is assessee's money and has to be refunded –

·       Notification No. 12/2015-C.E. (N.T.) has been wrongly interpreted in impugned order that such credit could not be utilized –

·       Amount to be refunded to appellant when utilization of such accumulated credit became impossible particularly after introduction of GST –

·       Amount is refundable in cash –

·       Impugned order rejecting refund claim is set aside - Appeal allowed –

Section 142 of the Gujarat Goods And Services Tax Act, 2017 [para 5, 6, 7] [In favour of appellant]