Cenvat credit can be used for education cess and secondary higher education cess under the area-based exemption ruling.

Cenvat credit of basic excise duty may be utilised to pay education cess and secondary and higher education cess where the assessee operates under the relevant area-based exemption notification. CESTAT Ahmedabad followed its earlier decisions and treated the issue as already settled, holding that the controversy was no longer open for reconsideration. The assessee was therefore entitled to use accumulated basic excise duty credit for discharge of both cesses.

---

---

Issues: Whether Cenvat credit of basic excise duty can be utilised for payment of education cess and secondary and higher education cess.

Analysis: The issue was treated as settled by earlier decisions holding that, where the assessee operates under the relevant area based exemption notification, credit of basic excise duty can be utilised for payment of education cess and secondary and higher education cess. The Tribunal followed its earlier view and held that the controversy was no longer open for reconsideration.

Conclusion: The assessee is entitled to utilise Cenvat credit of basic excise duty for payment of education cess and secondary and higher education cess.

---