2026 (2) TMI 120 - AT - Central Excise

Refund of accumulated cenvat credit for education cesses under GST transitional provisions allowed on precedent; appeal granted.

Refund of accumulated unutilised cenvat credit relating to Education Cess and Secondary Education Cess under GST transitional provisions was allowed by ... Refund of accumulated unutilised cenvat credit relating to Education Cess and Secondary Education Cess - transitional provisions of GST - claim for refund under GST regime - HELD THAT:- Appellants seeks to rely on two decisions which as per him squarely cover the matter i.e. USV Private Limited vs Commissioner of CGST-Kolhapur [2023 (2) TMI 230 - CESTAT AHMEDABAD], which allowed in the similar circumstances the refund of Education Cess, Secondary & Higher Education Cess lying on balance in 30.06.2017 and he also seeks to place reliance on the decision of this Court (different Constitution) whereby cash refund vide matter in USV Private Limited vs CCE&ST Daman [2023 (2) TMI 230 - CESTAT AHMEDABAD] was allowed by this court. In view of the matter having been covered by the decisions quoted by the advocate, appeal is allowable. Same is allowed with consequential relief. Issues: Whether the assessee is entitled to refund of the balance of Education Cess and Secondary & Higher Education Cess forming part of accumulated unutilised CENVAT credit as on 30.06.2017 under the transition provisions despite an initial under-claim and a belated attempt to rectify the refund claim under the GST regime.Analysis: The issue was examined on the factual premise that the eligible tax credit for education cesses as on 30.06.2017 exceeded the amount claimed by the assessee due to an inadvertent under-claim, and the assessee later sought to file a revised refund under the GST regime but was unable to do so and ultimately filed for refund of the unutilised CENVAT credit. The matter is covered by earlier decisions permitting refund of education and secondary & higher education cesses lying in balance as on 30.06.2017 in similar circumstances; those precedents were relied upon and no contrary authority was shown by the respondent. In view of the cited binding/precedential authorities on the identical question, the legal position favours allowing the refund claim with consequential reliefs.Conclusion: The appeal is allowed and the refund of the balance education cess and secondary & higher education cess forming part of accumulated unutilised CENVAT credit as on 30.06.2017 is granted in favour of the assessee with consequential relief.