Cenvat credit utilisation against education cess during area-based exemption raised a substantial question of law.

Cenvat credit of basic excise duty was examined for use against education cess payable on finished goods during the period of area-based exemption under Notification No. 39/2001-C.E. The substantial legal question was whether such credit could lawfully be utilised while the assessee was availing the exemption. The tax appeal was admitted for consideration of that question of law.

---

---

Issues: Whether Cenvat credit of basic excise duty could be utilised for discharge of education cess payable on finished goods during the period when the assessee was availing area based exemption under Notification No. 39/2001-C.E. dated 31-7-2001.

Outcome: The tax appeal was admitted for consideration of the substantial question of law.

---