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TMI Blog2018 (2) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... the credit availed on the education cess paid for the third time by the appellants on the CVD portion is eligible. Appeal allowed - decided in favor of appellant. - E/99/2011 - Final Order No. 40332/2018 - Dated:- 19-1-2018 - Ms. Sulekha Beevi, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri R. Sai Prashanth, Advocate, for the Appellant Shri K.P. Muralidharan, AC (AR) for the Respondent ORDER Per Bench Brief facts are that the appellants are engaged in the manufacture of Non-woven fabrics. The raw materials namely PP Spun granules purchased from Reliance Industries Ltd. (RIL), which is a 100% EOU. RIL supplied the granules on payment of excise duty under sl.no. 2 of Notification No. 23/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther appellant is eligible to avail credit on education cess and secondary and higher education cess when inputs are supplied by 100% EOU paying duty under sl.no. 2 of Notification No. 23/2003-CE dated 31.03.2003 is set at rest by the decisions of the Tribunal in the case of Emcure Pharmaceuticals Ltd. Vs. CCE -2008 (225) ELT 513 (Tri.-Mum.) and CCE Vs. Jumbo Bags Ltd. 2013 (296) ELT 142 (Tri.-Chen.). He further submitted that the said decision was followed in the case of CCE Vs. Khanna Paper Mills Ltd. 2015 (326) ELT 167 (Tri.-Del.), wherein it was discussed as under:- 6. For proper appreciation of the issue the relevant provision is noticed as under. Rule 3(7). - Notwithstanding anything contained in sub-rule (1) and sub-rule ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plied by (1+BCD/400) multiplied by (CVD/100)}. 7. As per proviso to Section 3(1) of Central Excise Act, 1944, if the goods are manufactured by an EOU and brought to any place in India, the excise duty levied shall be equal to the aggregate of the duties of customs which would be leviable under the Customs Act, 1962 on like goods produced or manufactured outside India if imported to India. The aggregate duties of Customs include Basic Customs Duty and Additional Customs duty. The Additional duty of customs in turn is equal to excise duty leviable on goods manufactured in India. Thus this Additional Duty of Customs (CVD) includes within it, Education Cess and SHE cess. All manufacturers, including EOU, are required to pay other duties of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. - 2014-TIOL-1638-CESTAT-AHM = 2014 (307) E.L.T. 553 (T), Shreya Pets Pvt. Ltd. v. Commissioner - 2009 (240) E.L.T. 408 (Tri.-Bang.), CCE v. Jambo Bags Ltd. - 2013 (296) E.L.T. 142 (Tri.-Mad.). 5.2. Following the above judgments, we are of the view that the credit availed on education cess and secondary, higher education cess on the CVD portion is eligible. The demand raised on this count cannot sustain and requires to be set aside, which we hereby do. 5.3 The second issue for consideration is the education cess on CVD paid for the third time. The said issue has been discussed in the case of Polypack Industries Vs. CCE 2015 (327) ELT 568 (Tri.-Bang.). Following the above judgment, we hold that the credit availed on the education c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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