Cenvat credit utilisation for Education Cess and Higher Education Cess upheld as permissible under settled precedent

Cenvat credit of basic excise duty was considered usable for payment of Education Cess and Senior and Higher Education Cess. The Tribunal relied on earlier coordinated Bench rulings, which had been consistently followed, and noted that the High Court had approved the view that such utilisation was permissible and that the revenue's challenge did not give rise to a substantial question of law. On that basis, utilisation of the credit for discharging Education Cess and Senior and Higher Education Cess was treated as permissible, and the assessee prevailed.

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Issues: Whether Cenvat credit of basic excise duty could be utilised for payment of Education Cess and Senior and Higher Education Cess.

Analysis: The Tribunal noted that the same issue had already been decided by the Bench in earlier cases and had been followed in subsequent decisions. That view had also been approved by the High Court, which held that utilisation of credit of basic excise duty for payment of Education Cess was permissible and that the revenue's challenge did not raise any substantial question of law.

Conclusion: The utilisation of Cenvat credit for discharge of Education Cess and Senior and Higher Education Cess was held permissible, and the assessee succeeded.

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