Case Law Details
Case Name : Cellular Operators Association of India and Others Vs UOI and Others (Delhi High Court)
Related Assessment Year :
Courts :
All High Courts Delhi High Court
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CA Venkat Prasad P & CA Lakshman K
Education Cess was being levied on Central Excise and Service Tax from 10.09.2014. Education Cess paid on the purchase was available as a credit against payment of education cess on payment on the output removal. The credit of cess was not able to use for the payment of duty. Later when the rate of excise duty was increased from 12% to 12.5%, cess was rescinded. Thereby the accumulated credit was not able to be used. Similar was in case of Krishi Kalyan
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I feel that assessees do not have a chance to utilize EC/SHEC/KKC lying unutilized in their PLA/CENVAT account as on 30.06.17. Also there are many other assessees who did not reflect these figures lying unutilized in their PLA/CENVAT in ER-1/ST-3 returns.
However, there is no denying the fact that these cesses were valid levies during a certain point of time.The assessees had to deposit hard cash in PLA in the account head of Cess/SHE Cess first and then to utilize a part or full of it to discharge their Excise duty/ Service Tax liability. Similarly, credit earned through legal purchase can be utilized through CENVAT route, So as it stands, the assessees have unutilized Cess/SHE Cess/KKC in their PLA and/or Cenvat account. As the Central Excise duty and Service Tax got subsumed into GST, and there is no scope to utilize these amounts in GST regime, only logical conclusion remanins is to sanction refund of these amounts by the department.
Like to see other opinions too on is score.
Many assessees are demanding refund of EC/ SHEC /KKC lying unutilized in their PLA/ CENVAT account prior to introduction of GST. Is it justified /grantable?
Please offer your valuable opinion on this score.