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2023 (7) TMI 47 - AT - Central ExciseCENVAT Credit - sugar cess paid as CVD in respect of import of raw sugar - HELD THAT - This very issue has been considered by the Hon ble Karnataka High Court in the appellant s own case COMMISSIONER OF CENTRAL EXCISE VERSUS M/S SHREE RENUKA SUGARS LTD 2014 (1) TMI 1469 - KARNATAKA HIGH COURT where it was held that Assessee was entitled to claim CENVAT credit in respect of the cess paid as additional duty (CVD) on raw sugar imported under the Sugar Cess Act of 1982 read with Section 3 of the Customs Tariff Act, 1975. In view of the Karnataka High Court judgment In favor of the appellant themselves, the issue is no longer res-Integra. Accordingly the appellant is legally entitled for the cenvat credit on the sugar cess paid on import of raw sugar - appeal allowed.
Issues involved: Whether the appellant is entitled for cenvat credit on sugar cess paid as CVD in respect of import of raw sugar.
Comprehensive Details: Issue 1: Entitlement for Cenvat Credit The appellant claimed entitlement for cenvat credit on sugar cess paid as part of CVD for raw sugar import. The appellant relied on various precedents including judgments from different courts and CESTAT benches. The Hon'ble Karnataka High Court had previously ruled in favor of the appellant, stating that Sugar Cess is akin to a duty of excise, making the appellant eligible for Cenvat credit. The court emphasized that once a duty of excise is paid, the manufacturer is entitled to Cenvat credit as per Rule 3 of the Cenvat Credit Rules. The cess collected at the stage of sugar production is considered a duty of excise. Even when the duty is paid on imported raw sugar, the appellant is entitled to Cenvat credit under the relevant rules. Decision: Based on the precedent set by the Karnataka High Court judgment in favor of the appellant, the issue is no longer res-Integra. Consequently, the appellant is legally entitled to the cenvat credit on sugar cess paid for the import of raw sugar. The impugned order was set aside, and the appeal was allowed. (Pronounced in the open court on 28.06.2023)
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