2016 (11) TMI 1591 - AT - Central Excise

Utilization of Cenvat credit availed on Basic Excise Duty for payment of Education Cess and Higher Education Cess - Held that - The issue involved is covered by the judgment of Hon ble Gujarat High Court in Madura Industries Textiles case 2013 (1) TMI 352 - GUJARAT HIGH COURT where reliance placed in the case of CCE Vapi Vs. M/s Balaji Industries 2008 (7) TMI 215 - CESTAT AHEMDABAD where it was held that the benefit of utilization of credit of basic excise duty for payment of education cess is to be allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Admissibility of Cenvat credit on Basic Excise Duty utilized for Education Cess and Higher Education Cess during June 2010 to July 2011.

Analysis:
The appeals were filed against orders passed by the Commissioner (Appeals), C.Ex. & S. Tax, Rajkot. The main issue was whether the Cenvat credit availed on Basic Excise Duty and used for Education Cess and Higher Education Cess during a specific period was admissible. The appellant's advocate argued that the issue had been settled by the Hon'ble Gujarat High Court in a specific case, followed by the Tribunal in other cases. The Commissioner of Central Excise, Rajkot had also dropped the demand against the appellant for a subsequent period based on these judgments.

The Authorized Representative for the Revenue reiterated the findings of the Commissioner (Appeals). The Tribunal noted that the issue was indeed covered by the judgment of the Hon'ble Gujarat High Court and decisions of the Tribunal in other cases. As a result, the impugned orders were set aside, and the appeals were allowed with any consequential relief as per law. The judgment was dictated and pronounced in open Court.