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2018 (7) TMI 983 - AT - Central ExciseMaintainability of appeal - monetary amount involved in the appeal - the amount involved is less than ₹ 10,00,000/- - Held that - According to the instruction issued under F. No. 390/Misc./163/2010-JC dated 17.12.2015 in partial modification of the earlier instruction dt. 17/08/2011, monetary limit for filing the appeal before the Tribunal by the Revenue has been fixed at ₹ 10,00,000/- - Since in this appeal the amount is less than ₹ 10,00,000/-, the appeal has to be rejected - the appeal is liable to be dismissed on monetary limits without going into the merits. CENVAT Credit - education cess and secondary and higher education cess - Whether Rule 3(1) of the Cenvat Credit Rules, 2004 applies to goods received from 100% export oriented units and whether the appellant-assessee is eligible to avail Cenvat credit on entire amount of education cess and secondary and higher education cess? - Held that - The issue is no longer res-integra and stands decided in the case of TYCHE INDUSTRIES LTD. VERSUS COMMISSIONER OF C. EX., VISAKHAPATNAM 2010 (2) TMI 1125 - CESTAT BANGALORE , where it was held that appellants are entitled to avail 100% credit of Education Cess on the goods supplied to them by a 100% EOU - credit allowed. Appeal dismissed - decided against Revenue.
Issues involved:
1. Monetary limit for filing appeal by Revenue before Tribunal. 2. Eligibility of appellant-assessee to avail Cenvat credit on education cess from goods received from 100% export oriented units. Analysis: 1. Monetary limit for filing appeal by Revenue before Tribunal: The judgment addresses the issue of the monetary limit for filing an appeal by the Revenue before the Tribunal. The appeal filed by the Revenue involved an amount less than ?10,00,000, which was below the monetary limit set by the instruction issued by F. No. 390/Misc./163/2010-JC dated 17.12.2015. The Tribunal referred to a decision by the Hon'ble High Court of Karnataka in the case of Commissioner of Income Tax, Bangalore Vs. Ranka & Ranka, which held that the circular regarding the monetary limit applies even to appeals filed prior to the issuance of the instructions. The Circular by CBEC clarified that the instructions would apply to appeals pending before High Court and CESTAT. Therefore, the appeal was dismissed based on the monetary limits without delving into the merits. 2. Eligibility of appellant-assessee to avail Cenvat credit on education cess: The judgment also delves into the issue of whether Rule 3(1) of the Cenvat Credit Rules, 2004 applies to goods received from 100% export oriented units and if the appellant-assessee is eligible to avail Cenvat credit on the entire amount of education cess. The Ld. Counsel for the appellant-assessee argued that the issue had been settled by the Tribunal in previous cases, citing the decision in Tyche Industries Ltd. Vs. CCE. The Tribunal found that the issue was no longer res integra and agreed with the Ld. Counsel's assertion. The Tribunal referred to previous decisions and held that the appellant was entitled to avail 100% credit of Education Cess on goods supplied by a 100% EOU. The Tribunal set aside the impugned order and allowed the appeal with consequential reliefs, if any, based on the settled issue in favor of the appellant. In conclusion, the judgment addressed two main issues: the monetary limit for filing an appeal by the Revenue before the Tribunal and the eligibility of the appellant-assessee to avail Cenvat credit on education cess from goods received from 100% export oriented units. The judgment provided detailed analysis and references to previous decisions to support the conclusions reached on both issues.
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