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TMI Blog2024 (10) TMI 1542X X X X Extracts X X X X X X X X Extracts X X X X ..... whether auto cess and education cess could be regarded as duties of excise and based upon the same, the manufactured goods or the services provided could be regarded as exempted goods or exempted services - In M/s Mahindra and Mahindra Ltd, the Coordinate Bench held that having regard to the nature of the various duties or cesses, which are in addition to the duty of excise leviable under the Act or additional duty of excise leviable under Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act 1957 which are nothing but levies of excise - The Court held that once it is seen that these cesses and duties are also excise duties and, on that basis, are included in the CENVAT credit scheme, as indicated by Rule 3 itself, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the appeal memo, the following substantial questions of law have been formulated: - 1) Whether in the facts and circumstances of the case and in the law the Tribunal was right in relying upon a case, which was relied upon in a case law which was held to be per incuriam by Apex Court much before the decision of the Tribunal? 2) Whether in the facts and circumstances of the case and in law the Tribunal was right in not following the ratio delivered by Honourable High Court of Uttarakhand in the case of Hero Motocorp Ltd even though it was holding the filed. 3) Whether in the facts and circumstances of the case the Tribunal has erred in interpreting Rule 6 of the Cenvat Credit Rules 2004 thereby equating the automobile cess under a differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es that CENVAT Credit shall not be allowed on such quantity of input as is used in or in relation to the manufacture of the exempted goods or for provisions of exempted services. 8. In M/s Mahindra and Mahindra Ltd (supra), the controversy was whether auto cess and education cess could be regarded as duties of excise and based upon the same, the manufactured goods or the services provided could be regarded as exempted goods or exempted services. 9. In M/s Mahindra and Mahindra Ltd (supra), the Coordinate Bench held that having regard to the nature of the various duties or cesses, which are in addition to the duty of excise leviable under the Act or additional duty of excise leviable under Section 3 of the Additional Duties of Excise (Goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon; or (b) credit of service tax attributable to service in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed. 11. Rule 7(b) quoted above refers to the credit of service attributable to service used in a unit exclusively engaged in the manufacture of exempted goods or providing of exempted services, and there is a bar to the distribution of such credit. Therefore, Rule 7 would apply in the context of manufacturing exempted goods or providing exempted services. As noted earlier, M/s Mahindra and Mahindra Ltd (supra) holds that as long as cesses like auto cess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra) was neither raised before the CESTAT nor does it appeal to us in the facts and context of the present matter. As noted above, the issues in the two cases were not the same. 15. Mr Adik, however, submits that there is a dispute over whether the Respondent has paid the cess or not. From the material on record, we find that there is no basis for raising such a dispute. In any event, this is not what was argued before the CESTAT. No substantial question of law was urged to be framed on this premise either in the appeal memo or during arguments. The fact-finding authorities nowhere hold that the Respondent did not pay the cess. 16. None of the substantial questions of law as urged arise in this appeal. Accordingly, for the above reasons, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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