Adjustment of Tax demand from Unutilized Cenvat Credit not carried forward to GST regime can be claimed by Assessee without any Bar

In Uttaranchal Cable Network v. Commissioner, Customs, Central Excise & Service Tax [ Order No. 51902/2021 dated October 13, 2021] Hon’ble Customs Excise and Service Tax Appellate Tribunal (“CESTAT”) held that the adjustment of the tax demand from the unutilized cenvat credit lying as on June 30, 2017 can be carried forward to the GST regime by the Assessee.

Uttaranchal Cable Network (“the Appellant”) aggrieved by the order (“Impugned Order”) passed by the commissioner, disallowing the adjustment of demand for service tax for the period prior to June 30, 2017 out of the cenvat credit lying of Rs. 14,31,166 as of June 30, 2017, has preferred this appeal.

The Appellant submitted that as per the conditions under Section 140 of the Central Goods and Services Act, 2017 (“CGST Act”) the appellant is entitled to take, in his electronic cash ledger (“ECL”) the amount of cenvat credit relating to period ending June 30, 2017, to the GST regime.

Hon’ble CESTAT, Delhi held that as per Section 140(1) read with Section 142 of the CGST Act, the Appellant is entitled to claim adjustment of the tax demand from the unutilized cenvat credit, lying to the credit as on June 30, 2017, which has not been carried forward to the GST regime.

Observed that, the commissioner has committed mistake of law while passing the Impugned Order and accordingly is liable to be set aside and allowed the present appeal.

Directed that, the adjudicating Authority to grant adjustment of the unutilized amount of Rs. 14,31,166/- against the demand payable by the assessee. Further directed that, the appellant shall be entitled to consequential benefits in accordance with law.

Online GST Course by Bimal Jain

Recorded: Certified Advanced GST Course

Course Details: Certificate of Participation will be Provided, Free GST Updates on E-mail, WhatsApp, Telegram for 1 Year, Background Material and PPT will be Provided on the downloadable basis, Total 21 Recorded Sessions (60 Hours), will be available for 120 hours or 60 Days whichever expires earlier.

For Registration:- https://cutt.ly/hxjl5Cu

Recorded: GST Course on Exports, Deemed Exports, SEZ, Imports, Merchandise Exports, Inverted Duty Structure (including Refunds)

Course Details: 6 Online Recorded Sessions of 2.30Hrs each with Background Material (BGM)

For Registration:- https://cutt.ly/pvw7mzl

For more details, Call: +91-8076563802, E-mail: intern@a2ztaxcorp.com, Web: www.a2ztaxcorp.in

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.

In Uttaranchal Cable Network v. Commissioner, Customs, Central Excise & Service Tax [ Order No. 51902/2021 dated October 13, 2021] Hon’ble Customs Excise and Service Tax Appellate Tribunal (“CESTAT”) held that the adjustment of the tax demand from the unutilized cenvat credit lying as on June 30, 2017 can be carried forward to the GST regime by the Assessee.

Uttaranchal Cable Network (“the Appellant”) aggrieved by the order (“Impugned Order”) passed by the commissioner, disallowing the adjustment of demand for service tax for the period prior to June 30, 2017 out of the cenvat credit lying of Rs. 14,31,166 as of June 30, 2017, has preferred this appeal.

The Appellant submitted that as per the conditions under Section 140 of the Central Goods and Services Act, 2017 (“CGST Act”) the appellant is entitled to take, in his electronic cash ledger (“ECL”) the amount of cenvat credit relating to period ending June 30, 2017, to the GST regime.

Hon’ble CESTAT, Delhi held that as per Section 140(1) read with Section 142 of the CGST Act, the Appellant is entitled to claim adjustment of the tax demand from the unutilized cenvat credit, lying to the credit as on June 30, 2017, which has not been carried forward to the GST regime.

Observed that, the commissioner has committed mistake of law while passing the Impugned Order and accordingly is liable to be set aside and allowed the present appeal.

Directed that, the adjudicating Authority to grant adjustment of the unutilized amount of Rs. 14,31,166/- against the demand payable by the assessee. Further directed that, the appellant shall be entitled to consequential benefits in accordance with law.

Online GST Course by Bimal Jain

Recorded: Certified Advanced GST Course

Course Details: Certificate of Participation will be Provided, Free GST Updates on E-mail, WhatsApp, Telegram for 1 Year, Background Material and PPT will be Provided on the downloadable basis, Total 21 Recorded Sessions (60 Hours), will be available for 120 hours or 60 Days whichever expires earlier.

For Registration:- https://cutt.ly/hxjl5Cu

Recorded: GST Course on Exports, Deemed Exports, SEZ, Imports, Merchandise Exports, Inverted Duty Structure (including Refunds)

Course Details: 6 Online Recorded Sessions of 2.30Hrs each with Background Material (BGM)

For Registration:- https://cutt.ly/pvw7mzl

For more details, Call: +91-8076563802, E-mail: intern@a2ztaxcorp.com, Web: www.a2ztaxcorp.in

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.

In Uttaranchal Cable Network v. Commissioner, Customs, Central Excise & Service Tax [ Order No. 51902/2021 dated October 13, 2021] Hon’ble Customs Excise and Service Tax Appellate Tribunal (“CESTAT”) held that the adjustment of the tax demand from the unutilized cenvat credit lying as on June 30, 2017 can be carried forward to the GST regime by the Assessee.

Uttaranchal Cable Network (“the Appellant”) aggrieved by the order (“Impugned Order”) passed by the commissioner, disallowing the adjustment of demand for service tax for the period prior to June 30, 2017 out of the cenvat credit lying of Rs. 14,31,166 as of June 30, 2017, has preferred this appeal.

The Appellant submitted that as per the conditions under Section 140 of the Central Goods and Services Act, 2017 (“CGST Act”) the appellant is entitled to take, in his electronic cash ledger (“ECL”) the amount of cenvat credit relating to period ending June 30, 2017, to the GST regime.

Hon’ble CESTAT, Delhi held that as per Section 140(1) read with Section 142 of the CGST Act, the Appellant is entitled to claim adjustment of the tax demand from the unutilized cenvat credit, lying to the credit as on June 30, 2017, which has not been carried forward to the GST regime.

Observed that, the commissioner has committed mistake of law while passing the Impugned Order and accordingly is liable to be set aside and allowed the present appeal.

Directed that, the adjudicating Authority to grant adjustment of the unutilized amount of Rs. 14,31,166/- against the demand payable by the assessee. Further directed that, the appellant shall be entitled to consequential benefits in accordance with law.

Online GST Course by Bimal Jain

Recorded: Certified Advanced GST Course

Course Details: Certificate of Participation will be Provided, Free GST Updates on E-mail, WhatsApp, Telegram for 1 Year, Background Material and PPT will be Provided on the downloadable basis, Total 21 Recorded Sessions (60 Hours), will be available for 120 hours or 60 Days whichever expires earlier.

For Registration:- https://cutt.ly/hxjl5Cu

Recorded: GST Course on Exports, Deemed Exports, SEZ, Imports, Merchandise Exports, Inverted Duty Structure (including Refunds)

Course Details: 6 Online Recorded Sessions of 2.30Hrs each with Background Material (BGM)

For Registration:- https://cutt.ly/pvw7mzl

For more details, Call: +91-8076563802, E-mail: intern@a2ztaxcorp.com, Web: www.a2ztaxcorp.in

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.