9911796707
TMI Blog2024 (10) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... of HDPE Woven bags. During the course of audit for period April 2017 to June 2017 conducted by Central excise department it was noticed by the audit party from the scrutiny of ER1 returns that the Appellant has utilised Edu Cess credit of Rs 1,04,665/- and SHE cess Rs 52,330/- total Rs 1,56,995/- lying in balance 01-03-2015 towards payment of Central Excise Duty for The month of June 2017. The relevant part of Final Audit Report is as under:- 3. The Show cause notice SCN was adjudicated vide the Order- In-Original dated 29.01.2021 and the demand as proposed in the SCN was confirmed and penalty of equal amount was imposed under Section 11AC of the Central Excise Act, 1944. 4. On appeal before the First Appellate Authority learned Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is not with regards to the admissibility of Cenvat credit but with regards to the utilization of Cenvat credit, rightly availed by the Appellant in respect of Education-cess and Higher Education-cess. Notification No.12/2015-CE(NT) dated 30.04.2015 is reproduced bellow:- "2. In the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), in rule 3, in sub-rule (7), in clause (b), after the second proviso, the following shall be substituted, namely:- "Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the factory of manufacture of final product on or after the 1st day of March, 2015 can be utilized for payment of the duty of excise leviable u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of Central Excise Duty of 12.36% including the cesses is being rounded off to 12.5%." 10. The Notification No.12/2015-CE(NT) has been issued amending the Cenvat Credit Rules as to implement the above proposed amendment in the rate of duty as per the Hon'ble Finance Minister's Speech. Accordingly, I agree with the view that the Notification No.12/2015-CE(NT) dated 30.04.2015 should be interpreted in a manner to fulfill the objective as highlighted by the Hon'ble Finance Minister in the above stated Budget Speech. Further it needs to be noted that the notification number 12/2015-CE (NT) is totally silent on the issue of accumulated credit of the education cess and higher education cess available with the Appellants as on 01.03.2015, It do ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
