2017 (4) TMI 147

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....bsp; Zarda Scented Tobacco  classifiable under Chapter 24 of Central Excise Tariff Act, 1985.  By Notification No.8/2004-CE dated 21.01.2004, the payment of Central Excise duties, namely,  ADE (GSI), NCCD were exempted.  By the Finance Act, 2005, a NIL rate of duty of Excise, namely, Additional Duty of Excise (ADE) was levied on tobacco products. The new levy ADE (Surchage) is chargeable @ 6% on the value determined under Section 4A of Central Excise Act, 1944.  The appellant paid ADE (Surchage) on the goods manufactured and cleared w.e.f. 01.03.2005 and also paid Education Cess @ 2% on the ADE (Surchage). Show-cause notices were issued alleging that the appellant paid Education Cess wrongly by utilizing cenvat cred....

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....09.2005 and the amount of CENVAT credit on inputs/capital goods utilized towards payment of Education Cess is given below in the form of a Table." On plain reading, it is clearly evident that the appellant wrongly utilized CENVAT credit against payment of Education Cess.  In any event, it may be a case of poor drafting of the show-cause notice which cannot be a ground to drop the proceedings.  I am unable to agree with the contention of the ld.Advocate on preliminary issue. 5. On merit, I find that the allegation against the appellant is that during the material period, they had wrongly utilized CENVAT credit for payment of Education Cess.  The Hon'ble Guwahati High Court in the case of Union of India Vs. Kamakhya Cosme....