Assessee entitled to refund of unutilized Cenvat credit of Education and S&H Education Cess

Last updated: 15 February 2023

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The CESTAT, Ahmedabad has ruled that a company is legally entitled to a cash refund of its accumulated and unutilised Cenvat credit for Education Cess and Secondary and Higher Education Cess. This credit could not be used due to the introduction of GST. The tribunal also confirmed that the claim for this refund is not time-barred.

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in USV Private Limited v. Commissioner of Central Excise & ST, Daman [Final Order No. A/10198/2023 dated February 6, 2023] has set aside the order of the Revenue Department denying refund of Cenvat credit to the assessee. Held that, the assessee is legally entitled for cash refund of accumulated and unutilized Cenvat credit of Education Cess and Secondary and Higher Education Cess as per Rule 3 of the Cenvat Credit Rules, 2004 ("the Cenvat Credit Rules"), as such credit could not be utilised due to the introduction of Goods and Service Tax ("GST"). Further held that, such refund is not time barred.

Citation :
Final Order No. A/10198/2023 dated February 6, 2023

Daily Limit Reached