Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 258 - AT - Central ExciseUtilisation of CENVAT Credit - Appellant were availing credit of Education Cess and Secondary Higher Education Cess paid on the inputs and is utilising the same towards payment of Education Cess and Secondary Higher Education Cess payable on Tractor Cess on the Tractors - Rule 6(1) of the CENVAT Credit Rules, 2002 - Held that:- Although tractors are exempted from duty but cess of Education on automobile are paid thereon. Though these cess are governed and collected under the procedure laid down in Central Excise law but they borrow their legislative authority under duty statue. Therefore, they are not included in whole duty of excise and charge of nil rate of duty as has been referred in Rule 2 (d) of Cenvat Credit Rules 2004 defining exempted goods. Therefore, it is clear that tractors is exempted goods and not dutiable. Since tractors are exempted goods therefore credit of inputs (Inputs used in the manufacture of final product) is not admissible in terms of Rule 6(1) of Cenvat Credit Rules 2002/2004 for the reason that the final product i.e. tractor are wholly exempted from payment of duties of excise. Quantification of demand for the period from September, 2006 to March, 2012 - appellant submitted that an amount of ₹ 9.20,492/- on Education Cess and Secondary Higher Education Cess was wrongly availed by the Appellant but the same was duly reversed in the month of September, 2008. But the department has not taken that into consideration - Held that:- This issue require re-consideration and verification by the ld. Commissioner (Appeals) whether the Cenvat credit amount of ₹ 9.20,492/- which according to the Appellant they have already reversed, has been taken care of while raising the demand from the Appellant. Appeal allowed by way of remand.
|