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TMI Blog2020 (1) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... which Cenvat credit can be refunded to them in cash except under Rule 5 of Cenvat Credit Rules (CCR), 2004 in respect of Cenvat credit utilized in manufacture exported goods or exported services - Since export of both goods and services are exempt, cash refund of Cenvat credit which has gone into manufacture of the goods exported or services exported is allowed under Rule 5 of CCR, 2009. Otherwise, there is no provision under which Cenvat credit can be refunded in cash. The judgment of the Larger Bench of the Hon ble High Court of Bombay in M/S. GAURI PLASTICULTURE P. LTD., BOMBAY DYEING MANUFACTURING CO. LTD., M/S. SIMPLEX MILLS CO. LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE, INDORE, THE COMMISSIONER OF CENTRAL EXCISE, MUMBAI IV, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant M/s BHEL is a large public sector undertaking which manufactures various products and avails benefit of Cenvat credit. After the introduction of GST they have moved from the excise and service tax into the GST regime. As per the new provisions of GST, Cenvat credit lying in balance in their accounts at the time of the transition could be taken as input service credit and utilized accordingly. However, as per June, 2017 ST- 3 Return of the appellant, Cenvat credit amounting to ₹ 1,46,733/- remained unutilized. This Cenvat credit pertains to Education Cess (EC), Secondary Higher Education Cess (SHEC) and Krishi Kalyan Cess (KKC). They submitted an application to the Principal Commissioner of Central Tax, Hyderabad dt.30.05.2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (CCR), 2004 in respect of Cenvat credit utilized in manufacture exported goods or exported services. Since export of both goods and services are exempt, cash refund of Cenvat credit which has gone into manufacture of the goods exported or services exported is allowed under Rule 5 of CCR, 2009. Otherwise, there is no provision under which Cenvat credit can be refunded in cash. 4. Learned departmental representative draws the attention of the bench to the judgment of the Larger Bench of the Hon ble High Court of Bombay in the case of Gauri Plasticulture Pvt Ltd [2019-TIOL-1248-HC-MUM-CX-LB] on this issue in which questions framed by the Hon ble Larger Bench were as follows: (a) Whether cash refund is permissib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be carried forward as credit under GST. 6. I have carefully considered the judgments relied upon by the both sides. The judgment of the Larger Bench of the Hon ble High Court of Bombay was precisely on the point as to whether the assessee can get cash refund of Cenvat credit which they were not able to utilize and it was answered in negative. The Hon ble High Court of Madras was examining a different issue as to whether the precision of the credit of EC, SHEC KKC into the new GST regime was permissible or otherwise. The Hon ble High Court of Madras has not dealt with the issue of cash refund of unutilized Cenvat credit which is the question in dispute. In view of the above, I find that there is no legal provision under whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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