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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 ..... f Central Excise, Belgaum. 2. Briefly the facts of the case are that the appellants are manufacturers of sugar, molasses, rectified spirit, denatured spirit and denatured ethyl alcohol and they are availing CENVAT credit. During the scrutiny of monthly ER-1 returns filed by the appellant under Rule 12 of CENVAT Credit Rules, 2004 for the period from May 2010 to March 2011 and July 2010 to February 2011, it was noticed that the appellant utilized CENVAT credit availed on inputs/capital goods and input services towards the payment of sugar cess to the tune of Rs.4,05,44,520/- and Rs.1,30,36,368/-. The sugar cess at the rate of Rs. 24/- per quintal had been levied w.e.f from 1.3.2008 by vide Ministry of Consumer Affairs, Food and Public Distr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i. M/s. Shiv Shakti Nutrifoods Pvt. Ltd. vs. CCE, Hyderabad: 2013-TIOL-38-CESTAT-BANG. viii. CCE, Ludhiana vs. Malwa Industries Ltd.: 2004 (178) ELT 783 (Tri.-Del.) affirmed by Hon'ble Supreme Court as reported at 2010 (251) ELT 32 (P & H) ix. T.T.K. LIG Ltd. vs. CC: 2006 (193) ELT 169 (Tri.-LB) 4. He further submitted that as per the Sugar Cess Act, 1982, sugar cess is a levy of excise and credited to with the consolidated fund of India. He submits that as per the provisions of Rule 3(4) of the CCR, 2004, cenvat credit can be utilized for payment of any duty of excise which includes Sugar Cess. Similarly, in the case of Barnagore Jute Factory Co. cited supra, it has been held by the Hon'ble Supreme Court that Jute Cess even though lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar to Sugar Cess levy have decided that appellants are not eligible for CEVAT credit of CEC in terms of Rule 3(1) of the CCR. Relied upon following decisions: (i) M/s. ACC: 2019 (6) TMI 1192 - CESTAT, New Delhi. (ii) M/s. Deccan Cements: 2020 (371) ELT 795 (Tri.-Hyd.) (iii) M/s. ACC Ltd.: 2023 (4) TMi 166 - CESTAT, New Delhi. 6. Heard both the parties and perused the records. 7. The only issue to be decided in these appeals is whether the sugar cess can be paid utilizing CENVAT credit availed on inputs, capital goods and input services. The period involved in the present appeal relates to the period 2010-2011 and the relevant subrule (4) of Rule 3 of the CENVAT Credit Rules, 2004 reads as follows: "3(4) The CENVAT credit may be u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2002 [GS.R. 765(E), dated the 14th November, 2002 (vi) No. 56/2003-Central Excise, dated the 25th June, 2003 [GS.R. 513 (E), dated the 25th June, 2003); and (vii) No. 71/2003-Central Excise, dated the 9th 20031 h September, 2003 [GSR. 717 (E), dated the 9th September, shall, respectively, be utilized only for payment of duty on final products, in respect of which exemption under the said respective notifications is availed of: Provided also that no credit of the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, I shall be utilized for payment of service tax on any output service: Provided also that the CENVAT credit of any duty specified in sub-rule (1), except the National Calamity Contingen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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