2019 (11) TMI 1268 - AT - Central Excise

Utilization of CENVAT credit - whether the appellant can utilize the Cenvat Credit of basic Excise Duty for payment of National Calamity Contingent Duty (NCCD)? - HELD THAT - Hon ble UttaraKhand High Court in the case of M/S HERO MOTOCORP LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE, DEHRADUN 2018 (1) TMI 770 - UTTARAKHAND HIGH COURT has held that NCCD CESS are part of levies under rule 3(1) of Cenvat Credit Rule, 2004 making an aggregate of Cenvat Credit hence, assessee could make use of Basic Excise Duty for payment of NCCD CESS. As regard the sole reliance of the Revenue on the Judgment of Sikkim High Court in the case of UNICORN INDUSTRIES VERSUS UNION OF INDIA 2012 (5) TMI 621 - SIKKIM HIGH COURT , it is found that issue involved in such case was on exemption from payment of NCCD whereas the issue before us is whether the appellant is entitled to utilize Cenvat Credit of Basic Excise Duty for payment of NCCD - Therefore the judgment of the Sikkim High Court in the case of Unicorn Industries vs. Union of India being on entirely different issue is not applicable. The order passed by the Lower Authority is proper and legal which do not require any interference - Appeal dismissed - decided against Revenue.

Summary

Issues Involved:
Whether the appellant can utilize the Cenvat Credit of basic Excise Duty for payment of National Calamity Contingent Duty (NCCD).

Analysis:
The Appellate Tribunal CESTAT Ahmedabad heard three appeals concerning the utilization of Cenvat Credit of basic Excise Duty for NCCD payment. The Revenue argued against it citing a Sikkim High Court judgment. However, the Tribunal noted a Gauhati High Court judgment allowing such utilization for education cess. The Tribunal also referenced a Uttarakhand High Court case supporting the use of Basic Excise Duty for NCCD and CESS payments. Additionally, the Tribunal highlighted a Revisionary Authority decision and its own past ruling in favor of the appellant's position. The Tribunal emphasized the distinction between the issues in the Sikkim High Court case and the present matter, ultimately upholding the lower authority's decision and dismissing the Revenue's appeals.

This comprehensive analysis considered various legal precedents and interpretations to conclude that the appellant is entitled to utilize the Cenvat Credit of basic Excise Duty for payment of National Calamity Contingent Duty. The Tribunal's decision was based on a thorough review of relevant judgments and the specific issue at hand, ensuring consistency with past rulings and legal principles.