2023 (4) TMI 762 - AT - Central Excise

Utilisation of cenvat credit on account of Education Cess and SHE Cess paid through DEPB scrips towards payment of central excise duty in terms of Rule 3(7)(b) of Cenvat Credit Rules, 2004 - HELD THAT - Similar issue decided in the appellant s own case Hindustan Zinc Ltd. 2016 (7) TMI 1612 - CESTAT NEW DELHI for the subsequent period where it was held that Since the entire disputed amount was reflected under the CVD head in the Bill of Entry, taking of Cenvat Credit of such amount is in conformity with Rule 3 read with Rule 9 of the Cenvat Credit Rules. Further, I also find that the Notification no.89/2005-Cus dated 04.10.2005 has specifically permitted an importer to avail Cenvat Credit of additional duty leviable under Section 3 of the Customs Tariff Act against the amount debited in the Duty Entitlement Passbook Script. Since, no provisions of the Cenvat Statute have been contravened in this case, I am of the view that taking of disputed Cenvat Credit by the appellant is proper and justified. Since the issue involved herein is no more res integra in view of the aforesaid decision, therefore, the appeals filed by the appellant are allowed.

Summary

Issues involved:
The issue involved in this case is whether the appellants are entitled to utilize cenvat credit on account of Education Cess and SHE Cess paid through DEPB scrips towards payment of central excise duty in terms of Rule 3(7)(b) of Cenvat Credit Rules, 2004.

Summary:

The appeals were filed challenging the impugned order-in-appeal dated 28.04.2022. The main issue was whether the appellants could use cenvat credit for Education Cess and SHE Cess paid through DEPB scrips for central excise duty. The appellant's counsel argued that a previous decision by the Tribunal favored the appellant on a similar issue. The Revenue's representative, however, supported the findings in the impugned order.

The Tribunal reviewed the decision in the appellant's own case for the subsequent period and agreed with the previous decision. It was noted that the Bills of Entry did not separate the amount of Cess and duty, and since the disputed amount was under the 'CVD' head in the Bill of Entry, taking cenvat credit for that amount was in line with the Cenvat Credit Rules. The Tribunal also pointed out that a specific notification allowed importers to avail cenvat credit against amounts debited in the Duty Entitlement Passbook Script, without contravening any provisions of the Cenvat Statute.

Given the previous decision and the specific notification, the Tribunal found no merits in the impugned order. The appeals were allowed in favor of the appellant, with any consequential relief to be granted according to the law.

The issue being no longer open to question based on the previous decision, the appeals were allowed with any necessary relief as per the law.

[Order pronounced on 6.4.2023]