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2018 (5) TMI 458 - AAR - GSTWhether accumulated credit by way of Krishi Kalyan Cess (KKC) as appeared in the Service tax return of Input Service Distributor (ISD) ON June 30, 2017 which is carried forward in the electronic credit ledger maintained by the company under CGST Act 2017, will be considered as admissible input tax-credit? Held that: - The enumerated list of items in respect of which CENVAT credit is available makes no reference to the KKC. By the Notification No. 28/ 2016 - Central Excise (N.T.), the 26th May, 2016, the Central Government made the rules, which came into force on 1st of June, 2016, to amend the CENVAT Credit Rules, 2004 - in respect of these rules, CENVAT credit was available in respect of KKC. KKC would be utilised towards payment of KKC only, Further, it was expressly provided that the list of items in respect of which CENVAT credit is available, as enumerated above, would not be utilized for payment of KKC. Thus, there was a clear demarcation of the credit in respect of KKC. Under GST, there is no levy of KKC. In the present case, KKC is to be utilized for payment of KKC only. Therefore, KKC cannot be treated as excise duty or service tax. in view thereof, the CENVAT credit as referred to in sub-section (1) of section 140 would not include the credit in respect of KKC. The non-availability of carry forward of credit with respect to KKC has been clarified to the Trade - accumulated credit by way of Krishi Kalyan Cess (KKC) as appeared in the Service tax return of Input Service Distributor (ISD) on June 30, 2017 which is carried forward in the electronic credit ledger maintained by the company under CCST Act 2017, will not be considered as admissible input tax-credit. The question in the present case is answered in negative.
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