Question62:Whether the credit of KKC claimed in TRAN-1 is valid or not. If not, reason

Answer There are explanation notes given in Section 140 regarding meaning of the term "eligible duty" used in section 140 which does not include KKC. But this is not applicable to claim taken under section140(1). In section 140 (1) this covers all opening balance of cenvat credit.

In addition to it there is settled law that if there are two interpretations of law then one which is in favour of the asessee should be preferred.

If in your case you are claiming credit of KKC as an opening balance u/s 140(1). I suggest you to not reverse the credit of cess and higher education cess and if there is any SCN issued then give reply to it This is a general issue and will be decided in your favour.(REPLY dt. 19/02/2018)