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2021 (7) TMI 766 - CESTAT CHENNAIUtilization of CENVAT Credit on Education Cess and Secondary & Higher Education Cess, for payment of Excise duty - period post amendment of Cenvat Credit Rules w.e.f. 01.03.2015 - penalty - HELD THAT:- The decision by the Hon’ble Delhi High Court in CELLULAR OPERATORS ASSOCIATION OF INDIA AND OTHERS VERSUS UNION OF INDIA AND ANOTHER [2018 (2) TMI 1264 - DELHI HIGH COURT] has analysed the issue whether Education Cess and Secondary & Higher Education Cess can be utilized for payment of service tax / excise duty after the introduction of amendments in Rules 3 (7) (b) of Cenvat Credit Rules,2004 by Notification No.12/2015-CE (NT) dt. 30.04.2015 - The demand raised under the SCN for recovery of the wrongly availed cenvat credit is legal and proper. Penalty - HELD THAT:- Taking into consideration that the issue is of interpretational nature, the equal penalty imposed under Rule 15 (2) of the CENVAT Credit Rules, 2004 read with Section 11AC(c) of the Central Excise Act, 1944 is unwarranted and cannot sustain. Penalty is set aside. Impugned order is modified to the extent of setting aside penalty only without disturbing the confirmation of demand in respect of cenvat credit / duty along with interest - Appeal allowed in part.
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