2017 (11) TMI 332

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..... hority has denied the credit on the ground that sugar cess paid under the Sugar Cess Act was not admissible under Rule 3(i) of Cenvat Credit Rules, 2004. Being aggrieved by the Order-in-Original respondent filed an appeal before the Commissioner(Appeals). The Commissioner(Appeals) relying on the judgment in case of Shri. Renuka Sugar Ltd Vs. CCE, Belgaum[2007(218)ELT 388(Tri. Beng.)] allowed the appeal therefore Revenue is before me. 2. Shri. A.B. Kulgod, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterating grounds of appeal submits that sugar cess is not prescribed as duty for availing Cenvat credit under Rule 3(i) of Cenvat Credit Rules, therefore credit is not admissible. 3. On the other hand, Shri. V. B. Gaikwa .....

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..... the rate prescribed in the Central Excise Tariff Act, 1985. In addition, the assessee is also liable to pay cess as a duty of excise under the Sugar Cess Act of 1982. On such additional duty or CVD paid at the time of import by the assessee, apart from the Basic Customs Duty, he is entitled to the Cenvat credit in terms of clause (vii) of Rule 3 of Cenvat Credit Rules, 2004. 41. Therefore, in the light of the above discussion, we are of the view that the assessee was entitled to claim Cenvat credit in respect of the cess paid as additional duty (CVD) on raw sugar imported under the Sugar Cess Act of 1982 read with Section 3 of the Customs Tariff Act, 1975. Therefore, the substantial question of law is answered in favour of the assessee an .....

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..... is excise duty or in other words a tax and then under Rule 3, the assessee is entitled to the Cenvat credit. 5. Therefore keeping in view the decision of the Renuka Sugars Ltd, I do not find any infirmity in the impugned order and therefore I hold that there is no merit in the appeal of the Revenue and the same is dismissed. Revenue will be at liberty to proceed as per law after the decision of the Supreme Court of the India where their SLP is pending. With these observations, the Revenue's appeal is dismissed. As per above judgments, the Cenvat credit in respect of sugar cess paid as CVD on imported sugar is admissible. Accordingly, impugned order is upheld and Revenue's appeal is dismissed. (pronounced in court)
Case laws, Decision .....

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