Pre-GST unutilized Credit of Education Cess, SHEC and KKC eligible to be refunded

International Seaport Dredging Pvt. Ltd Vs Commissioner of GST (CESTAT Chennai)

The CESTAT, Chennai Bench in the matter of M/s International Seaport Dredging Pvt. Ltd v Commissioner of GST & Central Excise [Order no. 40249 of 2022 dated, June 17, 2022] set aside the impugned order pertaining to the rejection of refund of unutilized cenvat credit of Education Cess, Secondary and Higher Education cess (“SHEC”) and Krishi Kalyan cess (“KKC”) and has held that such rejection is not justified and assesses is entitled to file the refund claim.

Facts:

M/s International Seaport Dredging Pvt. Ltd. (“the Appellant”) is a registered company, engaged in providing dredging services, filed refund claim under Section 11B of the Central Excise Act, 1944 (“the Central Excise Act”) for the refund of unutilized cenvat credit availed on Education cess, SHEC and KKC and carried forward the same to TRAN-1 after the introduction of the Goods and Services Tax (“GST”). The Revenue Department (“the Respondent”) by an order (“the impugned order”) rejected the same holding that under Section 140 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) refund can be sought only for eligible duties and such duties excludes refund of cess.  Aggrieved by the impugned order, the Appellant filed an appeal before the Commissioner.

Issue:

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