CVD and SAD Paid Post-GST Eligible for CENVAT Credit Under Earlier Regime: CESTAT Allows Cash Refund u/s 142(3)

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has clarified the transitional provisions related to legacy indirect tax credits by allowing a cash refund under Section 142(3) of the GST Act for countervailing duties (CVD) and special additional duty (SAD) that were paid under the pre-GST regime but became eligible for credit after the implementation of GST. This decision provides important clarity on how businesses can claim refunds for taxes paid under the previous indirect tax system, ensuring a smoother transition and preventing the loss of legitimate tax credits that were carried forward into the GST era.