2023 (6) TMI 991 - AT - Central Excise

Entitlement to utilize the cenvat credit of basic excise duty for payment of education cess and secondary higher education cess - HELD THAT - The issue is no longer re-integra as in various judgments is was held that the assessee is entitled for the utilization of cenvat credit of basic excise duty for payment of education cess or higher education cess. Reliance can be placed in the case of M/S ASR MULTIMETALS P. LTD. VERSUS C.C.E. S.T. RAJKOT 2018 (10) TMI 1627 - CESTAT AHMEDABAD where it was held that the Hon ble Supreme Court in SRD Nutrients (P) Ltd. 2017 (11) TMI 655 - SUPREME COURT considering the very same issue particularly on the area based exemption notification held that Education Cess being a duty of excise is exempted under area based exemption notification. The issue is no more res- inetgra as it has been decided in favour of the assessee - Appeal allowed.

Summary

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

Judgment Summary:

Issue 1: Utilization of cenvat credit for payment of education cess and higher education cess
The issue in this case was whether the appellant is entitled to utilize the cenvat credit of basic excise duty for payment of education cess and secondary higher education cess. The appellant argued that this issue had been settled in various judgments, including Mono Steel India Ltd Vs. CCE, VVF Ltd Vs. CCE, Gallant Metal Ltd Vs. CCE, ASR Multi Metals Pvt Ltd Vs. CCE, India Steel Corpn Ltd Vs. CCE, and others. The appellant relied on these judgments to support their claim for utilizing the cenvat credit for payment of education cess and higher education cess. On the other hand, the Revenue reiterated the findings of the impugned order.

Issue 2: Precedents supporting utilization of cenvat credit
The Tribunal noted that the issue had been settled in various judgments, such as M/S ASR MULTIMETALS P. LTD VS. CCE & ST RAJKOT and MONO STEEL INDIA LTD VS. CCE, where it was held that the appellant is entitled to utilize the cenvat credit of basic excise duty for payment of education cess and secondary & higher education cess under Exemption Notification No. 39/2001-CE. The Tribunal considered the judgments of the Hon'ble Supreme Court and other decisions cited by the counsel, concluding that the appellant is entitled to the utilization of cenvat credit for the said payments. Therefore, the impugned order was set aside, and the appeal was allowed.

Final Decision:
Based on the precedents and judgments cited, the Tribunal held that the appellant is entitled to utilize the cenvat credit of basic excise duty for payment of education cess and secondary higher education cess. The impugned order was set aside, and the appeal was allowed.

*( Pronounced in the open court on 21.06.2023 )*