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2018 (5) TMI 183 - AT - Central ExciseUtilization of CENVAT credit of education cess for discharge of Central Excise duty - Credit lying in balance in Secondary and Higher Secondary Education Cess - Rule 3(7)(b) of Cenvat Credit Rules 2004 - Held that - provisions of Rule 3(7)(b) of the CCR and also CBEC Circular dt 30.4.2015 hold that Cenvat Credit lying in balance in the account of Secondary and Higher Secondary Education Cess and accumulated before 1.3.2015, can be used only for discharge of cess as provided under the rule and cannot be used for discharging the Excise duty - appeal dismissed - decided against appellant.
Issues: Discharge of Central Excise duty using unutilized Cenvat Credit for Secondary and Higher Secondary Education Cess
In this judgment by the Appellate Tribunal CESTAT AHMEDABAD, the issue at hand pertains to the discharge of Central Excise duty using unutilized Cenvat Credit specifically allocated for Secondary and Higher Secondary Education Cess. The appeal was filed against the order passed by the Commissioner (Appeals) Commissioner of Central Excise, Customs and Service Tax-RAJKOT. Despite the absence of the appellant during the hearing, the Tribunal proceeded with the case due to the narrow scope of the issue. The lower authorities had applied Rule 3(7)(b) of the Cenvat Credit Rules 2004, determining that the Education Cess credit can only be utilized for payment of Secondary and Higher Secondary Education Cess. The appellant's argument challenging this interpretation was based on the contention that such application would render the basic purpose of the Cenvat Credit Rules 2004 ineffective. However, the Tribunal upheld the lower authorities' decision, emphasizing that the Cenvat Credit balance for Education Cess accumulated before 1.3.2015 can only be used for discharging the cess and not for Excise duty payment. After careful consideration of the records and submissions, the Tribunal found that the First Appellate Authority had provided detailed findings, including references to Rule 3(7)(b) of the Cenvat Credit Rules and a CBEC Circular. The Tribunal concluded that no interference was necessary in the reasoned order of the lower authorities. Consequently, the impugned order was upheld, and the appeal was rejected.
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