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TMI Blog2024 (9) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... le 3 of the CCR, 2004. In the absence of any restriction of utilization under subrule (4) of Rule 3 of the CENVAT credit Rules, 2004 in discharging Sugar Cess, the utilization of accumulated credit in discharging liability of Sugar Cess cannot be denied. This Tribunal in DECCAN CEMENTS LTD, M/S BHARATHI CEMENT CORPORATION PVT LTD, M/S ZUARI CEMENT LTD, M/S PENNA CEMENT INDUSTRIES LTD UNIT IV, I, M/S RAIN CEMENTS LTD VERSUS COMMISSIONER OF CENTRAL TAX, RANGAREDDY, TIRUPATI GST, COMMISSIONER OF CUSTOMS, CENTRAL EXCISE SERVICE TAX, NELLORE, TIRUPATI [ 2019 (7) TMI 764 - CESTAT HYDERABAD] , comparing Sugar Cess with Clean Energy Cess observed that Sugar Cess as held by the Hon ble Karnataka High Court to be duty of excise stands in a different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a show-cause notice dated 03.06.2011 and 05.08.2011 was issued to the appellant and vide Orders-in-Original, the adjudicating authority demanded and ordered recovery of Rs.4,05,44,520/- and Rs.1,30,36,368/- respectively, being the amount of cess on sugar in cash under Section 11A of the Central Excise Act with interest. Penalty under Rule 25 has also been imposed. Aggrieved by the said orders, appellants are before us. 3. Learned advocate appearing for the appellant submitted that the issue involved in these appeals is no more res integra and has been settled in favour of the appellant by various decisions of High Court and the Tribunal in appellant s own. In support of his submission, he relied upon the following decisions: i. Shree Renuk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own case has held that levy of sugar cess is a duty of excise on sugar and hence, CENVAT Credit Rules, 2004 is applicable. 5. The learned Authorized Representative for the Revenue submitted that Sugar Cess is not levied under Section 3 of the Central Excise Act, 1944 but levied under Section 3 of Sugar Cess Act, 1982 and hence, the Sugar Cess cannot be considered as duty of excise for applicability of the various other provisions under the said Act. 5.1 Further, sub-rule 3(4) of CENVAT Credit Rules, 2004 specifies the circumstances where the said CENVAT credit availed under Rule 3(1) may be utilized. It is required to be understood that for the purpose of CENVAT Credit Rules, Rule 3(1), 3(4) and 3(7) are not to be treated as separate set of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts are removed as such or after being partially processed; or (c) an amount equal to the CENVAT credit taken on capital goods if such capital goods are removed as such or (d) an amount under sub-rule (2) of rule 16 of Central Excise Rules, 2002; or (e) service tax on any output service : Provided that while paying duty of excise or service tax, as the case may be, the CENVAT credit shall be utilized only to the extent such credit is available on the last day of the month or payment of duty or tax relating to that month or the quarter, as the case may be: Provided further that the CENVAT credit used in the manufacture of final notifications of quarter, as the case may be, of the duty, or service tax, paid on the inputs, or products cleared G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ariff 10 and 8517 12 90 respectively of the First Schedule of Provided also that the CENVAT credit of any duty mentioned in sub-rule (1), other than credit of additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005)), shall not be utilised for payment of said additional duty of excise on final products. 8. Further, we find that the Hon ble Karnataka High Court in appellant s own case as reported at 2014 (302) ELT 33 (Kar.) observed that Sugar Cess is nothing but a duty of excise and admissible to take credit under Rule 3 of the CCR, 2004. In the absence of any restriction of utilization under subrule (4) of Rule 3 of the CENVAT credit Rules, 2004 in discharging Sugar Cess, we are of the view that the utilization ..... X X X X Extracts X X X X X X X X Extracts X X X X
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