2025 (9) TMI 1867

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....l Duty (SAD) paid towards de-bonding of the capital goods post introduction of GST regime. 2. The brief facts are the Appellant is a 100% Export Oriented Unit (EOU) engaged in providing application support services and other engineering support services. Consequent to exit from 100% EOU scheme, Appellant filed a refund claim on account of Countervailing Duty (CVD) and Special Additional Duty (SAD) paid on de-bonding of the capital goods. However, the refund claim was rejected on the ground that there is no specific provision under Rule 11B of Central Excise Act, 1944 to sanction refund of CVD and SAD paid towards de-bonding of capital goods and also it is held that Appellant is not covered under the transition provisions of CGST, 2017. A....

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....id amount of credit relates to goods manufactured and cleared under such exemption notifications as are notified by the Government". 10. As per the section 140(1) of the CGST ACT, 2017 CENVAT Credit of eligible duties can be carried forward as closing balance in ST-3 or ER-1 Returns as on 30.06.2017, thus as submitted by the appellant, differential duty paid after 01.07.2017 could not statutory be shown as credit carried forward in ER 1 Return as on 30.06.2017 even if the appellant had filed the return at a later stage. There is no enabling provision of CGST Act, 2017 for the transactional of the CENVAT credit of CVD and SAD paid on or after 01.07.2017. Section 142(3) of the CGST Act, 2017 governs the law relating to the transition....

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....harge on or after 01.07.2017. 12. Considering the ratio of the judgements relied by the appellant, CVD and SAD paid after 01.07.2017 on the goods imported prior to 01.07.2017 where eligible for CENVAT Credit but could not avail because of introduction of GST from 01.07.2007 are eligible for refund in cash in terms of section 142(3) of CGST act 2017. Appeal is allowed as prayed". 4. Learned Counsel further submits that as per Rule 3(1) read with Rule 9 of Cenvat Credit Rules, 2004, the Appellants were entitled to claim Cenvat credit of the CVD and SAD paid on import of capital goods, including CVD and SAD paid as a consequence of de-bonding the said capital goods. The Department has also not made any contrary findings on....