2016 (4) TMI 1437 - HC - Central Excise

Admissibility of appeal - Utilization of Cenvat credit for payment of education cess and secondary and higher secondary education cess - HELD THAT - Tax appeal is, admitted for consideration of following substantial question of law Whether in the facts and circumstances of the case, the Tribunal was right in allowing the appeal of the assessee when the demand of Central Excise Duty was in respect of utilization of Cenvat credit of Basic Excise Duty for discharge of Education Cess payable on finished goods for the period July, 2009 to August, 2009 during which the assessee was availing the benefits of area based exemption under Notification No. 39/2001-C.E., dated 31-7-2001?

Summary

The Gujarat High Court considered a case where CESTAT allowed an assessee to use Cenvat credit for education cess and higher secondary education cess. The Revenue challenged this decision, arguing that a different view was taken in a previous case involving area-based exemption. The High Court admitted the tax appeal to consider whether the assessee could use Cenvat credit for education cess while enjoying area-based exemption.