2023 (2) TMI 1029 - AT - Central Excise

Tribunal remands case on education cess, clarifies distinction with excise duty.

Shree Renuka Sugars Ltd Versus C.C.E. & S.T. -Rajkot

Shree Renuka Sugars Ltd Versus C.C.E. & S.T. -Rajkot - TMI Issues involved: Whether the appellant, a sugar industry, is entitled to Cenvat Credit for Sugar Cess and Education Cess paid on imported raw sugar under the Sugar Cess Act, 1982.Analysis:The appellant, represented by Shri Rahul Patil, argued that the issue has been previously decided in their favor by the Tribunal at Banglore and the Karnataka High Court, citing relevant judgments. The appellant contended that they should be allowed the credit based on these precedents. The appellant relied on judgments such as M/s. Barnagore Jute Factory Co. Vs. Inspector of Ce.Ex.- 1992 (57) ELT 3 (S.C) and M/s Hindustan Coca-Cola Beverages Pvt. Ltd. Vs. CCE, Jaipur- 2018 (7) TMI 325- CESTAT NEW DELHI.The Revenue, represented by Shri Tara Prakash, supported the findings of the impugned order, maintaining their stance on the issue.Upon review, the Tribunal noted that while there was no specific mention of Sugar Cess and Education Cess under Rule 3 of Cenvat Credit Rules, 2004, the Karnataka High Court had ruled in favor of the assessee in a similar case. However, the Tribunal highlighted a recent Supreme Court judgment in Unicorn Industries Vs. Union of India - 2019 (370) ELT 3 (S.C) which clarified that education cess is not a duty of excise. The Tribunal differentiated between Sugar Cess and Central Excise duty, emphasizing that Sugar Cess is levied under a different Act. Consequently, the Tribunal decided to remand the case back to the Adjudicating Authority for a fresh order, considering the recent Supreme Court judgment.In conclusion, the Tribunal set aside the impugned order and directed a remand to the Adjudicating Authority for further consideration in light of the recent Supreme Court judgment.