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2023 (2) TMI 1029 - AT - Central ExciseCENVAT Credit of Sugar Cess and Education Cess paid on such Sugar Cess levied under Sugar Cess Act, 1982 - of Sugar Cess and Education Cess paid on such Sugar Cess levied under Sugar Cess Act, 1982 - HELD THAT:- There is no specific mention of Sugar Cess And Education Cess paid on such Sugar Cess under Rule 3 of Cenvat Credit Rules, 2004. However, the Hon’ble Karnataka High Court in COMMISSIONER OF CENTRAL EXCISE VERSUS M/S SHREE RENUKA SUGARS LTD [2014 (1) TMI 1469 - KARNATAKA HIGH COURT] decided the matter in favour of the assesse. On perusal of the said judgment, it is observed that the Cenvat Credit was allowed on the ground that the sugar cess is nothing but duty of excise on the ground that levy of such cess is under levy and collection of sugar cess under Central Exicse Act, 1944. However, Hon’ble Supreme Court in a recent judgment of M/S. UNICORN INDUSTRIES VERSUS UNION OF INDIA & OTHERS [2019 (12) TMI 286 - SUPREME COURT] held that the education cess is not a duty of excise. As regard the Sugar Cess the same is not a levy of Central Excise duty, whereas cess is levied under the sugar cess Act, 1982 . Therefore, the issue is that whether such cess and education cess paid thereon is duty of Central Excise or otherwise needs to be re-considered in the light of the recent judgment of Hon’ble Supreme Court in the case of Unicorn Industries Vs. Union of India. The impugned order is set aside - appeal disposed off by way of remand to the Adjudicating Authority for passing a fresh order.
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