Cenvat Credit of Sugar Cess and Clean Energy Cess and other types of duties/Cesses which are not specified under Rule 3(1) of Cenvat Credit Rules, 2004 - verification of credit documents - Central Excise - GENERAL INSTRUCTION NO. 24/2014-15

GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE,CUSTOMS S. TAX, NO.71, CLUB ROAD, BELGAUM - 590 001 DATED 01.12.2014 GENERAL INSTRUCTION NO. 24/2014-15 Sub : Cenvat Credit of Sugar Cess and Clean Energy Cess and other types of duties/Cesses which are not specified under Rule 3(1) of Cenvat Credit Rules, 2004 - verification of credit documents - Reg., Attention is invited to Rule 3(1) of Cenvat Credit Rules, 2004 where in a manufacturer or producer of final products is allowed to take Cenvat credit of duties specified at Sl. Nos. (i) to (xi) of the said sub rule. Thus it is imperative that the taxes paid by the manufacturer other than those specified in the said sub rule at Sl. Nos. (i) to (xi) are not eligible for Cenvat credit. 2. In this connection, Board's Circular No. 978/2/2014-CX dated 07.01.2014 communicated vide General Instruction No. 07/2013-14 dated 28.01.2014 may be referred where in, it is clarified that Education Cess and the Secondary and Higher Education Cess need not be paid on cesses which are levied under Acts administered by Department/Ministries other than Ministry of Finance(Department of Revenue) but are only collected by the Department of Revenue in terms of those Acts. Sugar Cess and Clean Energy Cess are not duties of Excise and Cenvat credit of such cesses paid is not eligible as they do not find place as duties at Sl. Nos. (i) to (xi) of Rule 3(1) of Cenvat Credit Rules, 2004. 3. It is also to underscore the fact that the department has challenged Hon'ble High Court's decision regarding eligibility of Cenvat credit on Sugar cess paid reported in 2014(302) ELT. 33(Kar.) in the case of M/S Renuka Sugars Ltd., before the Hon'ble Apex Court vide SLP No. 26630 of 2014, which was communicated vide letter C.No. IV/16/21/2014 Tech. dated 12.03.2014 4. In this scenario, it is hereby instructed that protective Show Cause Notices denying Cenvat credit of such cesses paid shall be issued in order to safeguard the Government revenue, and report the matter to Hqrs., to take up cases for adjudication etc., C. No. IV/16/04/2014-Tech (B.HARERAM) COMMISSIONER