Hubergroup India Pvt Ltd Vs Commissioner of C.E. & S.T (CESTAT Ahmedabad)
Case Background: In Hubergroup India Pvt Ltd vs Commissioner of C.E. & S.T., the main issue was whether the appellant was entitled to cash refund of accumulated and unutilized Cenvat credit on Education Cess (EC) and Secondary & Higher Education Cess (SHEC) under Section 142(3) of the CGST Act, 2017 read with Section 11B of the Central Excise Act, 1944. The revenue had denied the refund claim on the basis that the levies of these cesses had been abolished, and thus, the appellant could not retain the credit or claim refund.
Appellant’s Submission: The appellant contended that the issue was settled in multiple precedents, including:
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USV Private Ltd vs Commissioner – CESTAT Ahmedabad, 2023
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Schlumberger Asia Services Ltd vs Commissioner – CESTAT Chandigarh, 2021
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Emami Cement Ltd vs Commissioner – CESTAT Delhi, 2022
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Hindustan Zinc Ltd vs Commissioner – CESTAT Delhi, 2022
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International Seaport Dredging Pvt Ltd vs Commissioner – CESTAT Chennai, 2022
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Bharat Heavy Electricals Ltd vs Commissioner – CESTAT Delhi, 2019
The appellant argued that abolition of Education Cess does not affect accumulated Cenvat credit earned legally while the levy was in force. The accumulation of credit is independent of cessation of levy, and such credits remain valid for refund under law.
Tribunal’s Findings: The Tribunal carefully considered submissions from both sides and held:
