GST transition refund rules bar cash refund of unutilised Krishi Kalyan Cess credit carried in TRAN-1.

Unutilised Krishi Kalyan Cess lying in CENVAT credit and carried in TRAN-1 was held not refundable in cash under the GST transition scheme. The Tribunal examined section 140 of the CGST Act, 2017 and the refund route under section 142(9)(b) read with section 11B of the Central Excise Act, 1944, and followed earlier Tribunal precedent that cesses forming part of CENVAT credit do not become cash-refund eligible merely because they could not be carried forward into GST. The refund claim was rejected.

---

---

Issues: Whether the appellant was entitled to refund of unutilised Krishi Kalyan Cess lying in CENVAT credit balance and carried forward through TRAN-1 under the GST transition provisions.

Analysis: The refund claim was examined in the light of the transitional scheme under section 140 of the Central Goods and Services Tax Act, 2017 and the refund mechanism under section 142(9)(b) of the same Act read with section 11B of the Central Excise Act, 1944. The Tribunal followed its earlier decisions holding that unutilised CENVAT credit of cesses, including Krishi Kalyan Cess, is not refundable in cash merely because it was not allowed to be carried forward into GST. The Tribunal treated the issue as covered by prior binding Tribunal precedent and rejected the claim to refund.

Conclusion: The appellant was not entitled to refund of Krishi Kalyan Cess.

---