2017 (11) TMI 332

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....on the white sugar. The adjudicating authority has denied the credit on the ground that sugar cess paid under the Sugar Cess Act was not admissible under Rule 3(i) of Cenvat Credit Rules, 2004. Being aggrieved by the Order-in-Original respondent filed an appeal before the Commissioner(Appeals). The Commissioner(Appeals) relying on the judgment in case of Shri. Renuka Sugar Ltd Vs. CCE, Belgaum[2007(218)ELT 388(Tri. Beng.)] allowed the appeal therefore Revenue is before me. 2. Shri. A.B. Kulgod, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterating grounds of appeal submits that sugar cess is not prescribed as duty for availing Cenvat credit under Rule 3(i) of Cenvat Credit Rules, therefore credit is not admissible.....

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.....e., (1) Section 3 of Central Excise Act of 1944, at the rate prescribed in the Central Excise Tariff Act, 1985. In addition, the assessee is also liable to pay cess as a duty of excise under the Sugar Cess Act of 1982. On such additional duty or CVD paid at the time of import by the assessee, apart from the Basic Customs Duty, he is entitled to the Cenvat credit in terms of clause (vii) of Rule 3 of Cenvat Credit Rules, 2004. 41. Therefore, in the light of the above discussion, we are of the view that the assessee was entitled to claim Cenvat credit in respect of the cess paid as additional duty (CVD) on raw sugar imported under the Sugar Cess Act of 1982 read with Section 3 of the Customs Tariff Act, 1975. Therefore, the substantial qu....