Question29:
Whether Swachh Bharat Cess and Krishi Kalyan Cess available for Transitional credit or otherwise?
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 and SBC. 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.
In our opinion ITC of KKC and SBC is available. But this argument is not
accepted by Judgement of Delhi High court which is enclosed herewith. (Reply dt.
25/4/2018)