TMI Blog2019 (5) TMI 1091X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 12/2015 amended Cenvat Credit Rules 2004 by inserting three provisos to Rule 3(7)(b) enabling utilisation of credit of education cess and secondary and higher education cess in respect of inputs received after 01.03.2015 for payment of basic excise duty. However, the balance lying in credit was not covered by this notification also. Any provisions of fiscal laws or criminal laws should be read as such with no scope for intendment regardless of the consequences - A plain reading of the Cenvat Credit Rules as they existed during the relevant period did not allow the appellant to utilise credit of educational cess and secondary and higher education cess lying in balance for payment of basic excise duty. The utilization of the cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in violation of Rule 3(7)(b) of Cenvat Credit Rules 2004, which has been objected to by the department. A show cause notice was issued and the lower authority, after following due process, passed an order for recovery of ₹ 8,23,144/- in terms of Rule 14 of Cenvat Credit Rules, 2004 read with Section 11A(1) along with interest under Section 11AA on the ground that the credit was irregularly utilised. He also imposed a penalty under Rule 15(1) read with Section 11AC of the Central Excise Act, 1944. 3. Aggrieved, the appellant appealed before the First Appellate Authority who upheld the order of the lower authority in toto and rejected the appeal. Hence this appeal. 4. Learned consultant submits that Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on inputs or capital goods received in the factory of manufacture on or after 01.03.2015 to utilise such credit for payment of basic excise duty. However, this notification did not extend the same benefit to education and secondary and higher education cess lying in balance as on 01.03.2015 which is their case. Learned consultant argues that this notification is in the nature of a explanation and therefore logically the benefit which was conferred for inputs received after 01.03.2015 should not be denied to those inputs which were received prior to 01.03.2015 and on which secondary and higher education cess was paid. Therefore, the notification is discriminatory. He relies on the case laws of TAFE Ltd., [2011 (268) ELT 49 (Kar)] upheld wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the matter or regarding the rule position as it existed during the relevant period. The cenvat credit in question was credit of education cess and secondary and higher education cess lying in balance with the appellant on 01.03.2015. Prior to this date this could be utilised only for payment of education cess and secondary and higher education cess. The appellant could not use this credit for this purpose as these cesses were abolished. Notification No. 12/2015 amended Cenvat Credit Rules 2004 by inserting three provisos to Rule 3(7)(b) enabling utilisation of credit of education cess and secondary and higher education cess in respect of inputs received after 01.03.2015 for payment of basic excise duty. However, the balance lying in cre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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