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2013 (8) TMI 342 - AT - Central ExciseCenvat credit on sugar cess - whether the cenvat credit of sugar cess is admissible to the appellants - Held that - the Cess Act and the Sugar Development Fund Act both have been brought on the statute book simultaneously on the same day and operate as a consolidated scheme and the provisions of both the Acts have to be read together. On such conjoint reading, it is apparent that a plain reading by itself would indicate that the sugar cess levied and collected cannot be equated with duty of central excise and therefore, cannot be treated to be part and parcel of the amount on which education cess has to be calculated - Following decision of COMMISSIONER Versus SAHAKARI KHAND UDYOG MANDLI LTD. 2010 (3) TMI 718 - GUJARAT HIGH COURT - Decided against Assessee.
Issues:
Admissibility of cenvat credit on sugar cess paid by the appellants. Analysis: The appeals before the Appellate Tribunal CESTAT AHMEDABAD were related to the admissibility of cenvat credit on sugar cess paid by the appellants. The issue revolved around whether the cenvat credit of sugar cess was admissible to the appellants or not. The Departmental Representative (D.R.) relied on the judgment of the Hon'ble High Court of Gujarat in a specific case and argued that sugar cess, although collected as a duty of excise, was not eligible for cenvat credit as it was not a specified duty under Rule 3(1) of the Cenvat Credit Rules, 2004. The Tribunal referred to the judgment of the Hon'ble High Court of Gujarat in another case, which held that sugar cess could not be equated with the duty of central excise and, therefore, could not be considered for education cess calculation. The Tribunal emphasized that cenvat credit is admissible only for duties specified under the Cenvat Credit Rules, as per Rule 3. Since sugar cess was not included in the list of specified duties in the rule, the appellants were not entitled to cenvat credit, as correctly determined by the Commissioner (Appeals). The Tribunal rejected the appellants' reliance on a previous judgment, stating that it was not applicable to the current case, especially in light of the recent judgment by the Hon'ble High Court of Gujarat. Consequently, the appeals were dismissed on their merits, as well as for lack of prosecution. The decision was based on the legal principles established by the High Court and the specific provisions of the Cenvat Credit Rules regarding the admissibility of cenvat credit on sugar cess.
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