CENVAT credit on concessional CVD for imported coal remains admissible where the customs notification imposes no credit bar.

CENVAT credit was held admissible on countervailing duty paid at a concessional rate on imported coal because the customs notification governing the import did not incorporate the restriction found in the excise exemption notification for domestically manufactured coal. Rule 3(1)(vii) of the CENVAT Credit Rules, 2004 was applied to permit credit of CVD on imported coal, and the proviso limiting credit for coal covered by the excise notification could not be read into the customs notification by implication. The Tribunal treated the issue as settled by its earlier decision, affirmed by the High Court, and sustained the allowance of credit.

---

---

Issues: Whether CENVAT credit of countervailing duty paid at a concessional rate on imported coal was admissible under the CENVAT Credit Rules, 2004.

Analysis: The dispute turned on whether the restriction applicable to concessional excise duty on domestically manufactured coal could be extended to imported coal cleared on payment of CVD under the customs notification. The Tribunal noted that the customs notification governed imported coal and did not incorporate the restriction contained in the excise notification. It followed its earlier decision holding that Rule 3(1)(vii) of the CENVAT Credit Rules, 2004 permits credit of CVD on imported coal, and that the proviso restricting credit for coal covered by the excise exemption notification cannot be read into the customs notification by implication. The issue was treated as settled by the earlier Tribunal decision affirmed by the High Court.

Conclusion: CENVAT credit on the concessional CVD paid on imported coal was admissible, and the Revenue's challenge failed.

Final Conclusion: The order allowing credit was sustained and the Revenue's appeal was rejected.

Ratio Decidendi: A restriction on CENVAT credit attached to concessional excise duty under an excise exemption notification cannot be imported by implication to deny credit of CVD paid on imported coal under a customs notification, where the customs notification does not itself impose such a bar.

---