2020 (3) TMI 837

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....2004. They filed a refund claim dated 04.01.2018 seeking refund of Rs. 28,600/- of its unutilised balance of cesses lying in balance as on 30.06.2017 in CENVAT credit account as the new CGST Act has come into effect from 01.07.2017. After the introduction of CGST Act, a provision has been made in the CGST Act for transfer of balance of CENVAT credit as input tax credit under CGST Act. However there is no provision of transfer of balance of cesses into credit ledger of CGST. Therefore, they have claimed refund of unutilised balance of cesses in cash. 3. The appellant's application was rejected by the original authority after following due process. On appeal, the first appellate authority by the impugned order rejected the appeal as unsustai....

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....apse, as there is no provision retaining the same. The appellant cannot circumvent the said legal provision through the route of 142 (3) of the CGST Act, which is as follows: "(3) Every claim for refund filed by any person before, on or after the appointed day; for refund of any amount of CENVAT credit, duty, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law and an amount eventually accruing to him shall be paid in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944" On the basis of the above, the appellant contended that ....

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....t appellate authority, the present appeal is filed. 5. I have considered the submissions made in the appeal and also by the learned A.R. on behalf of the Revenue. The question which falls for consideration is whether the appellant is entitled to cash refund of cesses in respect of which they had a balance in CENVAT credit account which they could not utilise on 01.07.2017. As far as the CENVAT credit on account of excise duty of service tax is concerned, the provisions of CGST allow them to carry forward the same as input tax credit under the CGST. However, the CGST Act does not allow them to carry forward the cesses as input tax credit. The appellant's case is that as a result they will be losing the credit balance and therefore, the same....