2017 (8) TMI 1008

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.... hand, Shri K. Chowdhury, The Ld. Counsel for the Department states that the issue is squarely covered in favour of the Department as per the ratio laid down in the case of Hero Honda Motors Vs. Commr. of Central Excise, Meerut-I reported in 2017 (348) ELT 737 (Tri.-Del.) where it was observed that : "8. Heard both sides, perused records. Notification No. 50/2003, dated 10-6-2003 in question grants exemption to goods other than specified goods. There is no dispute that the manufacturing unit of the appellants is situated in one such area and entitled to exemption. The dispute however, is with reference to whether the appellant is liable to pay NCCD, Education Cess and Secondary Higher Education Cess in spite of the exemption notification....

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...., towards payment of such duty, which is not exempted under the said Notification" 2. The substantial question of law is really n two parts : The first part being whether NCC duty is exempted under Notification No. 32/99-C.E. If the answer to the first part is in the negative, then the second part is, whether Cenvat credit under the Cenvat Credit Rules can be utilised towards payment of NCC duty Our answer to the first part of the question is in the negative and our answer to the second part of the question is in the affirmative. "3. NCC duty is leviable under Section 136 of the Finance Act, 2001. Sub-section (1) of Section 136 of the Finance Act makes it clear that NCC duty is by way of a surcharge and is a duty of excise. NCC duty i....

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....he Cenvat Credit Rules, 2004. 6. It is clear from the above that the general exemption is only in respect of the duty of excise or additional duty of excise under any of the above Acts, namely, the Central Excise Act, 1944, the Additional Duties of Excise (Goods of Special Importance) Act, 1957 and the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978. The general exemption has absolutely no reference to NCC duty which is levied as a surcharge under the provisions of the Finance Act, 2001. 7. Consequently, insofar as the first part of the substantial question of law framed above is concerned, it must be answered in the negative which is to say that NCC duty, even though it is a duty of excise, is not exempted under....