Cenvat credit utilisation for Education Cess and Higher Education Cess accepted under binding High Court precedent.

Cenvat credit of basic excise duty was held usable for payment of Education Cess and Secondary and Higher Education Cess. The Tribunal followed the Gujarat High Court ruling in Madura Industries Textiles, which had approved utilisation of basic excise duty credit for Education Cess, and therefore found the contrary view unsustainable. On that binding precedent, the impugned order was set aside and the appeal was allowed.

---

---

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

Analysis: The Tribunal noted that the dispute was covered by the Gujarat High Court decision in Madura Industries Textiles, which had approved utilisation of credit of basic excise duty for payment of Education Cess. Following that binding view, the impugned order could not be sustained.

Conclusion: Utilisation of Cenvat credit of basic excise duty for payment of Education Cess and Secondary and Higher Education Cess was permitted, and the appeal was allowed.

---