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TMI Blog2019 (2) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case is that appellant manufactures bright bar of stainless steel, and mild steel and mild steel wire. It has registered under the Central Excise Act. It availed cenvat credit on inputs for such manufacturing. During investigation made in January 2013, after intelligence gathered by the excise department, appellant was informed that as per provision of Rule 3(1) of Cenvat Credit Rules 2004 credit on Education Cess & Secondary and Higher Secondary Education Cess were not admissible and the appellant should reverse the same. Appellant did the reversal promptly and debited cenvat credit account for Rs. 15,31,045/- on 23.01.2013 but it was put to show-cause for such availment of allegedly inadmissible credit. The matter was adjudicated u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted out that the issue had attained finality that merely by availing credit which was reversed before utilisation against remittance of duty, interest liability would not arise. He further argued with reference to several judicial pronouncement reported in 2012 (281) ELT 192 (Kar.), 2012 (28) STR 214 (Kar.), 2014 (310) ELT 509 (Mad.) and in the case of Commissioner of Central Excise, Madurai vs. Strategic Engineering 2014 (310) ELT 509 (Mad) that the position of law has become quite clear that mere taking of cenvat credit itself would not compel the assessee to pay interest as well as penalty and consequently the respondent's stand for recovery of interest and imposition of penalty under Rule 14 and 15 respectively of Cenvat Credit Rules c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit located in India and Education Cess & Secondary and Higher Secondary Education Cess were duly paid by it. However, as rule 3(1) of the Cenvat Credit Rules 2004 has not attached availment of such cenvat credit against additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act and Section 3 of the Customs Tariff Act does not specifically say about availment of cenvat credit against the cess paid on Education & Secondary and Higher Secondary Education, apparently under the belief that such availment of credit on those two cess is inadmissible and it was asked to reverse the same. It was also put to notice and subsequent adjudication had taken place. But going by the Rule 3(1) of Cenvat Credit Rules 2004 sub-cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of excise (CVD) under section 3 of the Customs Tariff Act is included in the provision containing availment of cenvat credit in Rule (1) (vii) of Cenvat Credit Rules 2004 to be availed like other excise duties including Education Cess & Secondary and Higher Secondary Education Cess. In other words, only education cess paid under sub-section (5) is outside the purview of Cenvat Credit Rules and Secondary & Higher Education cess and are not attached to additional duty referred in sub-section (5) of Section 3 of the Customs Tariff Act. 7. In respect of taking of cenvat credit and its utilisation the learned counsel for the appellant had submitted relied upon the larger bench decision of J.K. Tyre, cited supra in which mear taking of credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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