9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (11) TMI 247 - AT - Central ExciseAdmissibility of CENVAT Credit of Education Cess in respect of invoices issued by 100% EOU - formula prescribed under Rule 3(7)(a) of CENVAT Credit Rules, 2004 Held that - The issue is no longer res-integra and credit of Education Cess is admissible. See Shreya Pets Pvt.Ltd. Vs CCE Hyderabad-(2008 - TMI - 34729 - CESTAT, Banglore)
Issues:
1. Admissibility of CENVAT Credit of Education Cess on invoices from 100% EOU. Analysis: The judgment by the Appellate Tribunal CESTAT, Ahmedabad dealt with the issue of the admissibility of CENVAT Credit of Education Cess on invoices from a 100% EOU. The assessee had availed CENVAT Credit based on invoices from the EOU, leading to proceedings being initiated by the Department. The Department contended that the CENVAT Credit should be calculated as per the formula under Rule 3(7)(a) of CENVAT Credit Rules, 2004, which allows for 50% credit for goods manufactured by EOU. However, the Tribunal referred to precedent decisions, including the case of Emcure Pharmaceuticals Ltd Vs CCE Pune 2008 and others, where it was held that the credit of Education Cess is admissible in such cases. The Tribunal noted that the Department had not considered the precedent decisions while filing the appeal. The Tribunal, after hearing both sides, found that the issue was no longer res-integra due to the established precedent in favor of allowing the credit of Education Cess on invoices from 100% EOU. Consequently, the appeal filed by the Revenue was rejected, and the cross objection filed by the respondent was disposed of. The judgment emphasized the importance of considering precedent decisions in similar cases, highlighting the need for consistency in legal interpretations and applications. In conclusion, the judgment clarified the admissibility of CENVAT Credit of Education Cess on invoices from 100% EOU, based on established precedent decisions. It underscored the significance of following legal precedents to ensure uniformity and fairness in decision-making processes. The Tribunal's ruling in this case reaffirmed the entitlement of the assessee to claim the CENVAT Credit of Education Cess, in line with the prescribed rules and previous judicial interpretations.
|
