2022 (12) TMI 1188 - AT - Central Excise

Utilization of CENVAT Credit - basic excise duty for payment of education cess and secondary and higher education cess - HELD THAT - The issue is no longer res-integra in the light of the various judgments cited by the learned counsel for the appellant. Particularly in view of the judgment of Jurisdictional High Court of Gujarat in the case of COMMISSIONER, CENTRAL EXCISE, CUSTOMS SERVICE TAX, VAPI VERSUS M/S MADURA INDUSTRIES TEXTILES 2013 (1) TMI 352 - GUJARAT HIGH COURT wherin it was held that the benefit of utilization of credit of basic excise duty for payment of education cess is to be allowed. The utilization of cenvat credit of basic excise duty for payment of education cess and secondary and higher education cess is correct and legal. Appeal allowed.

Summary

Issues:
Whether the appellant is entitled to utilizing the cenvat credit of basic excise duty for payment of education cess and secondary and higher education cess.

Analysis:
The appellant contended that previous tribunal judgments allowed such utilization of cenvat credit, citing cases like Madura Industries Textiles, Rama Cylinder Pvt Ltd, Mono Steel India Limited, Gallant Metal Ltd, and ASR Multimetals Pvt Ltd & Gallant Metal Ltd. The learned counsel argued that the issue is settled based on these precedents.

The revenue, represented by the Learned Superintendent (AR), reiterated the findings of the impugned order, opposing the appellant's claim.

Upon careful consideration of the submissions and records, the Member (Judicial) found that the issue is no longer res-integra due to the various judgments cited by the appellant's counsel. Notably, the judgment of the Jurisdictional High Court of Gujarat in the case of Madura Industries Textiles established the legality of utilizing cenvat credit of basic excise duty for payment of education cess and secondary and higher education cess. The specific order of the High Court supported this position.

Consequently, the impugned orders were set aside, and the appeals were allowed. The decision was pronounced in open court on 23.12.2022.