Dept. must allow adjustment of unutilised Cenvat credit not transferred to GST regime against service tax demand: CESTAT

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  • Last Updated on 15 November, 2021

adjustment of unutilised Cenvat credit

Case Details: Uttaranchal Cable Network v. Commissioner, Customs, Central Excise & Service Tax - [2021] 132 95 (New Delhi - CESTAT)

Judiciary and Counsel Details

    • Anil Choudhary, Judicial Member
    • Rajesh Chhibber, Adv. for the Appellant. 
    • Pradeep Gupta, AR for the Respondent.

Facts of the Case

The appellant was in the business of ‘Cable Operator’ service. The appellant was registered under the Service Tax regime. However, it didn’t choose to carry forward or to migrate cenvat credit to the GST regime, being the closing balance as on 30.06.2017. Pursuant to carrying an examination of the data of the appellant, a SCN was issued demanding service tax as short paid. The appellant didn’t contest the demand of service tax and requested to adjust unutilised CENVAT credit against the demand payable. The department informed that such adjustment of service tax as prayed was not allowable and it filed appeal against the same.


The Honorable CESTAT observed that cenvat credit lying unutilised as on 30.06.2017 would have been carried forward to GST regime as per provisions of Section 140 of the CGST Act. However, there is no bar or disability under Section 140(1) read with Section 142 of CGST Act, 2017 on an assessee for claiming adjustment of the tax demand from the unutilised cenvat credit lying to the credit as on 30.06.2017, which has not been carried forward to the GST regime. Therefore, it was held that the appellant would be allowed to make adjustment of the unutilised amount of cenvat credit against the demand payable.

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