The taxpayers are eligible for the cash refund of the cessess lying as cenvat credit balance as on 30/06/2017 in their accounts.

In the instant case, the appellant is engaged in the manufacture of Electrical and Mechanical Equipment, besides transmission, utilization, conservation and generation of power and as such are supplying equipment for generation at and transmission of electrical energy ex-Thermal, Hydro, and Nuclear Power Stations. They have been carrying the following un-utilized Credit Balances as reflected in their ER-Returns as 30th June 2017.

Departmental representative has argued that once there was no provision to carry over the cesses credit to the GST regime and nor there was any specific provision to refund the same under the scheme, the same would lapse.

There is no dispute that on 01/07/2017, the cesses credit validly stood in the accounts of the assessee and very much utilizable under the existing provisions. The appellants could not carry over the same under the GST regime. Thus the appellants were in a position where they could not utilize the same.

The tribunal hold that the assessee is eligible for the cash refund of the cessess lying as cenvat credit balance as on 30/06/2017 in their accounts.

[BHARAT HEAVY ELECTRICALS LTD. Vs COMMISSIONER CGST, CENTRAL EXCISE & CUSTOMS]