CENVAT credit on imported sugar upheld where sugar cess is treated as a duty of excise under the statute.

CENVAT credit was held admissible on the CVD paid for imported sugar because sugar cess was treated as a duty of excise under the governing statute. The Tribunal followed its earlier binding precedent on the same issue and noted that the Revenue's contrary view did not displace that precedent, particularly where no stay had been shown. On that basis, the challenge to the impugned order failed and the appellant succeeded.

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Issues: Whether CENVAT credit was admissible in respect of CVD paid on imported sugar, treating the underlying sugar cess as a duty of excise.

Analysis: The Tribunal followed its earlier decision on an identical issue, in which sugar cess was held to be a duty of excise within the meaning of Section 3(4) of the Sugar Cess Act, 1982, and therefore capable of supporting CENVAT credit of the corresponding CVD. The contrary view referred to by the Revenue did not dislodge the earlier binding tribunal precedent, particularly as no stay of that decision had been shown.

Conclusion: CENVAT credit on the CVD paid in relation to imported sugar was admissible, and the challenge to the impugned order failed.

Final Conclusion: The impugned order was set aside and the appeal was allowed in favour of the appellant.

Ratio Decidendi: Where sugar cess is treated as a duty of excise under the governing statute, the corresponding CVD paid on imported sugar is eligible for CENVAT credit.

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