2024 (6) TMI 13 - AT - Central Excise

Cenvat credit - 1%/2% CVD paid on imported Steam Coal vide N/N.12/2012- Cus dated 17.03.2012 - HELD THAT - The issue has been decided by the Tribunal in the case of M/s. Chettinad Cements Corporation Pvt Limited (supra) by final order dated 26.10.2020. The Tribunal had followed the decision in the case of M/S. TAMIL NADU NEWSPRINT PAPERS LIMITED VERSUS COMMISSIONER OF GST CENTRAL EXCISE, TIRUCHIRAPPALLI 2021 (10) TMI 13 - CESTAT CHENNAI . The demand raised and confirmed denying the Cenvat credit availed on CVD paid on imported Steam Coal was set aside. The demand cannot sustain and requires to be set aside. The impugned orders are set aside - Appeal allowed.

Summary

Issues involved:
The issue involved in the judgment is the eligibility of the appellant to take Cenvat credit of 1%/2% CVD paid on imported Steam Coal under Notification No.12/2012-Cus dated 17.03.2012.

Summary:

Background:
The appellant, engaged in the manufacture of Clinker and Cement, imported Steam Coal for use in generating steam/electricity for manufacturing their final product. The duty rates on Steam Coal varied, with concessional rates available under specific notifications.

CBEC Clarification:
A CBEC letter clarified the applicable rates and conditions for CVD on imported items, emphasizing the impact on domestic manufacturers and the need for equitable tax treatment.

Amendments:
Tariff rates on Steam Coal were amended over time, affecting the concessional rates and conditions for excise duty and Cenvat credit eligibility.

Department's View:
The department contended that CENVAT Credit of CVD on Steam Coal could only be availed if paid at the Tariff Rate of 6% adv., not at concessional rates, leading to show cause notices and demands on the appellant.

Appellant's Argument:
The appellant argued that Rule 3 of CCR 2004 did not restrict Cenvat credit on CVD paid on imported Steam Coal at concessional rates, citing relevant case law in their favor.

Tribunal Decision:
The Tribunal, based on previous decisions, including M/s. Tamil Nadu Newsprint and Papers Limited, ruled in favor of the appellant, setting aside the demand for denying Cenvat credit on imported Steam Coal.

Conclusion:
The Tribunal found in favor of the appellant, setting aside the demands and allowing the appeals with consequential reliefs, based on the interpretation of relevant notifications and case law.

This summary encapsulates the key issues, arguments, and the Tribunal's decision in the legal judgment regarding the eligibility of Cenvat credit on imported Steam Coal under specific notifications.