Clean Energy Cess credit not available under Cenvat rules when the cess is not expressly covered.

Clean Energy Cess paid on coal is not eligible for Cenvat credit under Rule 3 of the Cenvat Credit Rules, 2004, because the credit scheme applies only to duties and cesses expressly specified in the rules. The framework is rule-bound and cannot be expanded by interpretation beyond the express statutory list. The enabling provisions under the Central Excise Act and the Finance Act, 2010 do not authorise inclusion of a cess not specifically covered, and the precedent cited by the appellant was distinguished as relating to a different cess under another statute. Accordingly, credit is inadmissible.

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Issues: Whether Clean Energy Cess paid on coal is eligible for Cenvat credit under Rule 3 of the Cenvat Credit Rules, 2004.

Analysis: Rule 3 of the Cenvat Credit Rules, 2004 permits credit only in respect of specified duties and cesses. Clean Energy Cess is not included in that list. The scheme of credit under the Cenvat Credit Rules is rule-bound and cannot be extended beyond the express statutory framework. The authority to frame such rules flows from Section 37 of the Central Excise Act and Section 94 of the Finance Act, 2010, and the enabling provisions do not permit a broader reading to include a cess not specifically covered. The precedent relied on by the appellant was distinguished on the ground that it concerned a different cess under a different statute.

Conclusion: Credit of Clean Energy Cess is not admissible under Rule 3 of the Cenvat Credit Rules, 2004, and the appeal fails.

Ratio Decidendi: Cenvat credit can be availed only for duties or cesses expressly covered by the relevant credit rules, and a cess not specifically included cannot be brought within their scope by interpretation.

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