2014 (7) TMI 1052

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..... es of plastics falling under Chapter 39 of the Central Excise Tariff Act, 1985. They have availed of Cenvat credit of special additional duty (SAD)/sperial CVD at four per cent. ad valorem amounting to Rs. 2,01,415 during the period from 2007-08 to 2009-10 and Rs. 1,20,572 during the period from April 1, 2010 to November 30, 2010. They were issued show cause-cum-demand notices alleging that the said special CVD/additional duty (SAD) not being a specified duty prescribed under rule 3 of the Cenvat Credit Rules, 2004, in the list of eligible duties available to a manufacturer of excisable goods, hence the same were not admissible to them. The said demand notices were confirmed by the adjudicating authority by passing two separate orders. Aggr .....

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..... ority. Therefore, they were not eligible to Cenvat credit the special additional duty (SAD) paid at four per cent, during the relevant period. Heard both sides and perused the records, I find that the limited issue for determination is, whether the appellants were eligible to avail of Cenvat credit on special additional duty (SAD)/special CVD paid at four per cent, under sub-section (5) of section 3 of the Customs Tariff Act during the relevant period. I find that the Cenvat Credit Rules, 2004 has been amended by issuance of Notification No. 13/2005-CE (N.T.), dated March 1, 2005 whereby sub-clause (viia) has been inserted below clause (vii) which reads as under:-              &n .....

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..... , 2004. As observed above, the special additional duty (SAD)/special CVD at four per cent, levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975 has been included in the list of duties under rule 3 of the Cenvat Credit Rules from March 1, 2005 by issuance of Notification No. 13/2005-CE (N.T.). Hence, I do not find any reason for denying the Cenvat credit of the amount of SAD/special CVD paid by the importer and mentioned in the respective dealer's invoices. In these circumstances, I do not find merit in the order-in-appeal passed by the learned Commissioner (Appeals). Accordingly, the same is set aside and the appeals filed by the appellant are hereby allowed. Dictated and pronounced in the open court.
Case laws .....

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