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TMI Blog2024 (12) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... 16 (6) TMI 868 - CESTAT HYDERABAD] wherein it was held that ' the contention of the appellants that Education Cess and Secondary Higher Education Cess payable on that part of CVD which is equal to the basic excise duty is a part of CVD itself is not without substance.' As issue is squarely covered by the decision of Laser Shaving (I) P. Ltd. (Supra) therefore, it is held that the Respondent is entitled to avail Cenvat Credit of additional duty quantified in respect of duty of Excise levied under different enactments is available is terms of Rule 3(7) of Cenvat Credit Rules, 2004 read with condition No. 6 of Notification No. 85/2005 Custom dated 4th October, 2005. As Rule 3(7) of the Cenvat Credit Rules specifically covers of CVD qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from DEPB. 4. It is the case of the Revenue that the exemption notification allow Cenvat Credit of CVD leviable under Section 3 of Custom Tariff Act but does not allow the credit of EC/SHEC on such CVD. Therefore, the proceedings were initiated against the Respondent by issuance of the Show Cause Notice and the matter was adjudicated. The Adjudicating Authority drop the proceedings observing that EC/SHEC are integral part of CVD and as such it is to be treated in the same manner as CVD for the purpose of availing of Cenvat Credit. 5. Against the said order Revenue is in appeal alleging that the Respondent has violated the provision of Rule 3 of Cenvat Credit Rules, 2004 in so for as the said Rules allow Cenvat Credit of EC/SHEC on excisabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Cess and Secondary Higher Education Cess which is not admissible. After due process of law, the adjudicating authority confirmed the demand of Ra. 2,53,003/- being the irregular credit availed on both Cesses along with interest and imposed equal amount of penalty. The appellants filed appeal before the Commissioner (Appeals), when vide the order impugned herein upheld the same. Hence the present appeal. 8. And this Tribunal observed as under : 4. I have heard the rival submissions and perused the records carefully. The payment of additional duty of excise (CVD) is governed by sub-section (1) of Section 3 of Customs Tariff Act, 1975 and the exemption from this duty in import of goods is contained under Notification No. 89/2005. The main co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1978 d. Additional duty of excise under Additional Duties of Excise (Goods of Special Importance) Act, 1957; e. NCCD under Finance Act, 2001; f. Education Cess under Finance Act, 2004@ 2% on al the above duties of excise under Section 93 o the Finance Act, 2004; g. Secondary Higher Education Cess under Section 136 read with Section 138 of the Finance Act, 2007 @1% on all the above duties of excise except Education Cess in (f). The above would show that the rate of CVD applicable on the imported goods is the rate of total duties of excise which is inclusive of Education Cess and Secondary and Higher Education Cess payable on the aggregate of the other duties of excise. Therefore, the contention of the appellants that Education Cess and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce, the expression would include not only the amount equivalent to the excise duty but also the amount equivalent to the cess onsuch excise duty .. Simiar view was taken in the case of Jai Corp. Ltd. v. CCE ST, Vapi [2015(317) E.L.T 489 (Tri-Ahmd.)] and CCE ST, Ludhiana v. Khanna Paper Mills Ltd [2015 (3260 E.L.T. 167 (Tri-Del.)] 6. Another reason for denying credit is that the appellants did not pay the duties in cash, but the same was paid by debit in DEPB and that therefore credit is not admissible. The learned counsel for appellant pointed out that as per Circular No. 5/2005-Cus., dated 31-1-2005, it is clearly provided that Cess could also be debited from DEPB Script. 7. The Tribunal in the case of Seshasayee Paper and Boards Ltd. v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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