Cenvat credit for education cess upheld where basic excise duty credit could be used for payment.

Credit of basic excise duty in the Cenvat account could be used to pay education cess under the Cenvat Credit Rules, and separate payment only from an education cess credit account was not required. The Tribunal relied on earlier and later decisions taking the same view, and rejected the Revenue's reliance on a stay order because no contrary material displaced the settled position. The issue was treated as already covered against the Revenue, so the utilisation of basic excise duty credit for education cess was upheld.

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Issues: Whether credit of basic excise duty available in the Cenvat credit account could be utilised for payment of education cess, or whether education cess could be paid only from the education cess credit account under the Cenvat Credit Rules.

Analysis: The Tribunal noted that the same question had already been decided in earlier and later Tribunal decisions holding that credit of basic excise duty could be used for payment of education cess. The Revenue's reliance on a stay of one earlier decision was not accepted, and no contrary material was shown to displace the settled Tribunal view. In these circumstances, the Tribunal treated the issue as already covered against the Revenue.

Conclusion: The utilisation of basic excise duty Cenvat credit for payment of education cess was upheld, and the Revenue's appeal failed.

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