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2019 (4) TMI 930 - AT - Central ExciseCENVAT Credit - sugar cess paid on imported sugar - whether the assessee is entitled to CENVAT credit on sugar cess as the same is not one of the duties allowed for CENVAT credit under Rule 3(1) of the CENVAT Credit Rules, 2004? - Held that:- As per Rule 3 of CCR, 2004, CENVAT credit is not permissible on everything which has been paid but only such duties as are specified in it. Every Cess is levied under some specific Act and since there is no separate mechanism for collection etc., of such cesses, cess is deemed to be a duty of excise under Central Excise Act and correspondingly all provisions of the Central Excise Act will apply - A plain reading of Rule 3 would show that all cesses have not been made eligible for CENVAT credit but only duties of excise or additional duties of excise or education cess etc., have been made eligible for CENVAT credit. Sugar cess is clearly not covered in Rule 3 of CCR, 2004. The Hon’ble High Court of Karnataka in COMMISSIONER OF CENTRAL EXCISE VERSUS M/S SHREE RENUKA SUGARS LTD [2014 (1) TMI 1469 - KARNATAKA HIGH COURT] has allowed CENVAT credit on sugar cess which leaves me with no option but to follow this judgment while most respectfully disagreeing with it. The appellant is entitled to CENVAT credit on the sugar cess paid on the imported sugar - Appeal allowed - decided in favor of appellant.
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