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2018 (3) TMI 693 - AT - Central ExciseCENVAT credit of 2% Education Cess and 1% Secondary and Higher Secondary Education Cess paid on CVD portion of the duty by 100% EOU - Held that - identical issue decided in the case of M/s. Jai Corp. Limited Versus Commissioner of Central Excise & ST., Vapi 2014 (11) TMI 706 - CESTAT AHMEDABAD , where it was held that there is no restriction on taking credit of cess in the Cenvat Credit Rules, 2004 although there is a restriction regarding utilization of various credits - Rule 3(1) does allow taking of credit of cess specifically - appeal allowed - decided in favor of appellant.
Issues involved:
Admissibility of Cenvat credit for Education Cess and Secondary and Higher Secondary Education Cess paid on CVD portion of duty by 100% EOU. Analysis: The appeal was filed against an order-in-appeal passed by the Commissioner (Appeals-III), Central Excise-Rajkot, regarding the admissibility of Cenvat credit for Education Cess and Secondary and Higher Secondary Education Cess paid on the CVD portion of duty by a 100% EOU. The appellant, engaged in manufacturing Coated Steel Pipes, availed Cenvat credit during a specific period but faced a demand for recovery of the credit with interest and penalty. The issue revolved around the admissibility of the Education Cess and Secondary and Higher Secondary Education Cess paid on the CVD portion of duty by the 100% EOU. The appellant contended that the said Cess is eligible for credit under Rule 3(7) of the CCR, 2004, citing relevant case laws and a Supreme Court judgment supporting their stance. The appellant's advocate argued that the issue was no longer res-integra and referenced judgments from the Tribunal and the Supreme Court to support the claim that the Education Cess and Secondary and Higher Secondary Education Cess paid on the CVD portion of duty by the 100% EOU were eligible for credit under Rule 3(7) of the CCR, 2004. The Revenue's representative reiterated the findings of the Commissioner (Appeals) in their defense. The Tribunal, after considering the arguments and precedents, concluded that the Cenvat credit of Education Cess and Secondary and Higher Secondary Education Cess paid on the CVD portion of duty by the 100% EOU was admissible. The Tribunal referenced specific case laws and interpretations to support its decision, emphasizing that the elements of Cess should be considered as part of the CVD paid, thereby allowing the credit. Based on the established legal position and precedents, the Tribunal set aside the impugned order passed by the Commissioner (Appeals) and allowed the appeal with consequential relief, if any, as per the law. In conclusion, the Tribunal's judgment clarified the admissibility of Cenvat credit for Education Cess and Secondary and Higher Secondary Education Cess paid on the CVD portion of duty by a 100% EOU, based on established legal interpretations and precedents, ultimately ruling in favor of the appellant and setting aside the Commissioner (Appeals)'s decision.
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