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2021 (12) TMI 671 - AT - Central ExciseRefund of CENVAT Credit - refund claim has been rejected merely stating that the appellant has not availed the credit and carried forward to GST regime by filing TRAN-1 - HELD THAT:- There is no allegation raised by the department that the appellant is not eligible to avail credit of the duties / taxes paid on the inputs / input services. To put it more clearly, the appellant would be eligible to avail the credit but for the introduction of new GST law. It is also explained by the appellant that they are able to avail credit only after they make the full payment to the vendors. The appellants have cleared payments to vendors of the impugned invoices during the period from 5.7.2017 to 4.10.2017. The provisions of CENVAT Credit Rules, as it stood during the disputed period (March to June 2017), allowed the appellant to avail credit within a period of one year. They could not avail the credit only because of the introduction of GST law by which the CENVAT account has ceased to exist. In the case of ADFERT TECHNOLOGIES PVT. LTD. VERSUS UNION OF INDIA AND ORS. [2019 (11) TMI 282 - PUNJAB AND HARYANA HIGH COURT], it is held that transitional credit being vested right cannot be taken away on procedural or technical ground. In the present case, the appellant would be eligible to avail credit but for the introduction of GST law. The said right cannot be frustrated by pressing on the procedural requirement of filing TRAN-1 before 27.12.2017. The accounting practice adopted by the appellant allows to avail credit only after making payments to the vendors which has made it impossible to carry forward the credit as set out in the GST law. When the credit is eligible, the same cannot be denied by stating procedural requirements - In PUJAN BUILDERS ENGINEERS & CONTRACTORS VERSUS C.C.E. & S.T. -VADODARA-II [2021 (2) TMI 512 - CESTAT AHMEDABAD], the Tribunal allowed the refund even though initially the credit was carried forward to TRAN-1 and later reversed, after which the claim for refund was filed. The rejection of refund claim cannot be justified - Appeal allowed - decided in favor of appellant.
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