2008 (7) TMI 244

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..... ing the order of the Commissioner (Appeals) who has held that Education Cess can be paid by utilizing the Cenvat credit of BED. The main ground taken by the department is that Education Cess is not excise duty and therefore, the BED cannot be used for payment of Education Cess. 2. I have considered the arguments advanced by learned DR on behalf of the Revenue and I find that the Commissioner (App .....

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..... Mahindra Ltd. v. CCE, Mumbai - 2007 (211) E.L.T. 481 (Tri.-Mum.) has decided that Education Cess imposed on manufacturer and production of goods under Sections 91 & 93 of Finance Act, 2004 is in a nature of excise duty. Once it is decided that Education Cess is a duty of excise, then in terms of sub-rule 3(4) of the Cenvat Credit Rules, 2004, Cenvat credit can be utilized for payment of any duty .....

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..... it of duties not specifically listed under Rule 3(7). The credit of Basic Excise duty is one such duty credit, which is not subject to restriction under the said Rule 3(7). Therefore, in absence of any such restriction and as provided under Rule 3(4) of the Cenvat Credit Rules, 2004, I hold, that the credit of Basic Excise duty can be utilized for payment of any duty of excise. 3. In view of the .....

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