TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether Education Cess paid by a 100% export oriented undertaking on inputs was eligible for Cenvat credit, and whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery.
Analysis: Rule 3(1) of the Cenvat Credit Rules, 2004 permits credit of various duties and cesses, including Education Cess on excisable goods. Rule 3(7)(a) is a restrictive exception for specified duties paid by a 100% EOU, and its language was read as confining the restriction to basic customs duty and additional duty of customs worked out under the rule. The restriction was therefore held not to extend to Education Cess. On the stay issue, the order relied on the principle that interim relief must be granted with reference to the factual scenario and that there is no universal rule requiring deposit merely because a prima facie case is shown.
Conclusion: Education Cess credit was treated as admissible on a prima facie basis, and the appellant was held entitled to waiver of pre-deposit and stay of recovery.
Final Conclusion: The stay application succeeded and the demand recovery remained stayed until disposal of the appeal.
Ratio Decidendi: A restrictive provision in the Cenvat Credit Rules governing credit on supplies from a 100% EOU cannot be extended beyond its express scope so as to exclude Education Cess where the general crediting provision allows such cess as credit.
TaxTMI 
