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2021 (11) TMI 423 - AT - Central ExciseRefund claim of Education Cess (E-Cess) and Higher Secondary Education Cess (SHE Cess) as was in balance on 28.02.2015 and carried forward till 30.06.2017 - wrong interpretation to the N/N. 12/2015 - HELD THAT:- The E-cess and SHE-cess were Cenvatable, the credit whereof was allowed even for such inputs and capital goods which were received by the manufacturer even after 01.03.2015. The appellant had accumulated credit of E-cess and SHEcess. However, the same could not be utilized till 30.06.2017. The unutilized amount is the assessee’s money and, accordingly, has to be refunded to the assessee - The right of credit becomes absolute when the input is used in the manufacture of the final product. In the present case since the E-cess and SHE-cess were no more leviable after 28.02.2015, that the credit on the imports received by the assessee post said date was permitted to be utilized for payment of duty of excise. It is observed that Commissioner (Appeals) and even the Original Adjudicating Authority has given the wrong interpretation to the said notification by specifically holding that the credit of E-Cess and SHE-cess could not be utilized for payment of excise duty by virtue of notification No. 12/2015. This reason itself is sufficient to set aside the order under challenge - It is further observed that with effect from 01/07/2017, the new Goods and Services Tax Act became operational, that the utilization of the said balance became impossible. However, in terms of section 142 of the said new Act, the amount is made refundable to the appellant in cash. Denial thereof by Commissioner (Appeal) is highly unaccepted and is held absolutely unreasonable - Appeal allowed - decided in favor of appellant.
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