2013 (10) TMI 1498 - AT - Central Excise

Summary

Issues involved: Denial of credit for Education Cess and SHE Cess u/s duty paid by supplier.

In the judgment by the Appellate Tribunal CESTAT BANGALORE, the issue of denial of credit for Education Cess and Secondary & Higher Education (SHE) Cess u/s duty paid by the supplier was addressed. The appellant had taken credit amounting to Rs. 1,76,888/- during the period from August 2006 to March 2011, which was denied and demanded by the Revenue along with interest and penalty.

The appellant's counsel argued that the supplier had paid the Sugar cess along with Education Cess and SHE Cess on the sugar cess amount, which the Revenue contended was not payable. While acknowledging that Education Cess and SHE Cess are not payable on Sugar cess, the counsel argued that the appellant should not be denied credit as they were entitled to Cenvat credit of duty paid by the supplier. The counsel relied on decisions of the Hon'ble Supreme Court in the cases of Sarvesh Refractories (P) Ltd. vs. Commissioner and C.C.E. vs. MDS Switchgear Ltd., emphasizing that there cannot be any assessment at the buyer's end.

The Tribunal found that the decisions of the Hon'ble Supreme Court cited by the appellant's counsel were directly relevant to the case. Consequently, it was determined that the appellant had established a prima facie case for waiver of pre-deposit and a final decision in their favor. Therefore, the appeal was allowed with any consequential relief to the appellant.

The stay application and appeal were disposed of accordingly, with the order being dictated and pronounced in open court.