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2021 (12) TMI 956 - CESTAT KOLKATACENVAT Credit - Coal - CVD/excise duty at the rate of 1%/2% - Notice proceeds on the basis that if Cenvat credit of Central Excise Duty on coal cleared at the concessional rate of 1% under Notification No. 1/2011-CE dated 1 March 2011 as amended vide Notification No. 12/2011-CE dated 17 March 2012 was not available to the user then the credit of CVD on imported coal cleared at the rate of 1%/2% also should not be available as CVD is only aimed at counter balancing excise duty. HELD THAT:- There is no restriction in these notifications unlike Sl. No. 67 of Central Excise Notification No. 12/2012 dated 17 March 2012 in so far as the availment of Cenvat credit on coal is concerned. The credit of CVD is available under Rule 3(1)(vii) of the CCR and the proviso to Rule 3(1)(i) restricting credit in case of coal cleared under Excise Notification No. 12/2012 dated 17 March 2012 cannot impliedly be read into when the rate of CVD has not been borrowed from the excise notification but has a generally applied rate on its own. There is considerable merit in the contention of the Appellant that there is no room for any intendment in taxing statutes which deserves a strict interpretation. Even otherwise generally applied rate of CVD (1% upto 28 February 2013 and 2% thereafter under the Customs notification) and the concessional excise duty rate on domestically manufactured goods (1% all throughout without Cenvat under the excise notification) were not uniform and in any event, the expression “equivalent” appearing in Rule 3(1)(vii) of the CCR for quantification of CVD could not be restricted ignoring the tariff rate of excise duty of 6% on domestically manufactured coal. Identical issue decided in the case of JAYPEE SIDHI CEMENT PLANT VERSUS COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX, CUSTOMS AND EXCISE, JABALPUR [2019 (7) TMI 250 - CESTAT NEW DELHI] where it was held that the adjudicating authority has committed a legal error while denying the benefit of reduced CVD on imported coal while placing reliance upon the Excise notification for manufacture of coal. Appeal allowed - decided in favor of appellant.
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