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TMI Blog2015 (9) TMI 1380X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to Cenvat credit of Education cess and Secondary & Higher Education cess when inputs are supplied by 100% EOU, paying duty under Sr. No. 2 Notification No. 23/2003-CE dated 31.3.2003. 3. The respondents are engaged in manufacture of paper & paper board and are also availing Cenvat credit of the duty paid on inputs and capital goods.They purchased input, viz; petroleum coke from Reliance Industries Ltd, Jamnagar, a 100% EOU, paying duty under Sr. No. 2 Notification No. 23/2003-CE dated 31.03.2003. Pursuant to an audit the Respondents were directed to deposit the excess Cenvat credit of Rs. 37,45,509/- availed by them. The respondents issued letter disputing the same but however debited an amount of Rs. 8,49,215/ on 23.08. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot include the Education Cess and SHE cess paid as part of CVD. That therefore no Cenvat credit can be availed for the part of Education Cess and SHE cess paid as part of Additional Customs duty. It has to be mentioned that out of Rs. 37,45,509 an amount of Rs. 8,49,215/- was debited by appellant under protest much before the show cause notice. 5. On perusal of records it is seen that, during the period 03.05.2007 to 12.05.2007 the supplier of inputs, RIL, had cleared the duty on payment of excise duty @16% as the goods were manufactured prior to conversion as an EOU. For the period 13.05.2007 to 17.07.2007 the said goods were cleared by RIL without availing exemption of duty under Sr.No.2 of Notification No.23/2003-CE dated 31.03.2003.&nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... denote ad valorem rates, in percent of basis customs duty and additional duty of customs leviable on the inputs or the capital goods respectively and X denotes the assessable value. Provided that the CENVAT credit in respect of inputs and capital goods cleared on or after 1st March, 2006 from an export oriented undertaking or by a unit in Electronic Hardware Technology Park or in a Software Technology Park, as the case may be, on which such unit pays excise duty under Section 3 of the Excise Act read with serial number 2 of the Notification No. 23/2003-Central Excise dated 31st March, 2003 [G.S.R. 266(E), dated the 31st March, 2003] shall be equal to X multiplied by {1+BCD/400) multiplied by (CVD/100)} 7. As per proviso to Section 3(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p;This restriction is to prohibit taking credit on the BCD component. But credit is available on the Additional Customs duty (CVD) component. As already stated, Additional Customs duty includes excise duty as well as cess on this excise duty. Therefore the respondents are entitled to take credit of an amount equivalent to the Additional Customs Duty inclusive of excise duty and cess thereon. 9. The position has been well clarified and settled in Emcure Pharmaceuticals Ltd. Vs. CCE 2008 (225) ELT 513 (Tri.-Mum.) The respondents also relied on the judgements rendered in Jai Corp Ltd. Vs. CCE 2014-TIOL-2518-CESTAT-AHM, CCE Vs. Aarti Industries Ltd. 2014-TIOL-1638-CESTAT-AHM, Shreya Pets Pvt. Ltd. Vs. Commissioner 2009 (240 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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