UN-UTILIZED CREDIT OF CESSES, LYING IN CENVAT LEDGER AS ON 30.06.2017 HELD TO BE VESTED RIGHT AND TO BE REFUNDED IN CASH
Delhi Tribunal holds;
- That credit of Education Cess, Secondary & Higher Education Cess and Krishi Kalyan Cess earned by the applicant vested right (Reference made to the Judgment of Hon’ble Supreme Court in the case of Eicher Motors).
- That such right will not extinguish with the change in law, unless there is a specific provision providing that it shall lapse.
- That balance lying in CENVAT is to be paid as cash refund.
Observations:
- GST laws contain provisions pertaining to transitioning of credit from erstwhile laws to the GST laws. No such provisions are contained under the GST laws providing for lapse of credit of such cesses.
- Should we expect another retrospective amendment in the GST laws providing for the lapse of such CENVAT lying in the ledger? Let’s wait and watch!! Source: Bharat Heavy Electricals Limited (Excise & Taxation Division) v. The Commissioner, CGST, Central Excise and Customs (Delhi CESTAT)
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