Bank of India Investment Managers Pvt. Ltd. Vs Commissioner of CGST & Central Excise (CESTAT Mumbai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, decided appeals challenging orders dated 21.08.2020 passed by the Commissioner (Appeals), which had upheld the rejection of refund claims relating to accumulated credit of Education Cess (EC), Secondary and Higher Education Cess (SHEC), and Krishi Kalyan Cess (KKC).
The primary issue before the Tribunal was whether, under Sections 140 and 142 of the CGST Act, 2017, the appellant was entitled to claim refund of accumulated credit of EC, SHEC, and KKC paid on input services and remaining unutilised as of 30.06.2017.
The appellant was engaged in providing banking and other financial services. In June 2018, the appellant filed two refund claims: ₹15,78,680 relating to Education Cess and Secondary and Higher Education Cess, and ₹1,55,987 relating to Krishi Kalyan Cess. These amounts represented the balance of such cesses lying unutilised as of 30.06.2017 for the period from April 2017 to June 2017. The appellant had initially attempted to transition the credit into the GST regime through Form TRAN-1. However, after being unable to do so, the appellant filed refund applications on 29.06.2018 under Section 54 of the CGST Act read with Rule 89 of the CGST Rules, 2017, and also under Section 11B of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994.
