TaxTMI 
TaxTMI 
2019 (4) TMI 930
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....ported sugar after paying appropriate customs duty. When goods are imported they are liable to basic customs duty as per the Customs Act as well as additional duties of customs equivalent to Excise duties leviable on similar products if manufactured in India. One of such Excise duties is the sugar cess levied under Sugar Cess Act, 1982. The substantial question of law is whether the assessee is entitled to CENVAT credit on sugar cess as the same is not one of the duties allowed for CENVAT credit under Rule 3(1) of the CENVAT Credit Rules, 2004 (CCR, 2004). On this substantive question, the Hon'ble High Court of Gujarat in the case of Sahkari Khand Udyog Mandli Ltd [2011 (263) ELT 34 (Guj.)] held that sugar cess cannot be equated with Centra....
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....anufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of - (i) the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act; (ii) the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise Act; (iii) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 ( 40 of 1978); (iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 ( 58 of 1957); (v) the National Calamity Contingent duty leviabl....
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....s of the para 8 of notification No. 22/2003-Central Excise, published in the Gazette of India, part II, Section 3, sub-section(i),vide number G.S.R. 265(E), dated, the 31st March,2003. paid on- (i) any input or capital goods received in the factory of manufacture of final product or premises of the provider of output service on or after the 10th day of September, 2004; and (ii) any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004, including the said duties, or tax, or cess paid on any input or input service, as the case may be, used in the manufacture of intermediate products, by a jobworker availing the benefit of exemption specified in th....
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.... only such duties as are specified in it. Every Cess is levied under some specific Act and since there is no separate mechanism for collection etc., of such cesses, cess is deemed to be a duty of excise under Central Excise Act and correspondingly all provisions of the Central Excise Act will apply. A plain reading of Rule 3 would show that all cesses have not been made eligible for CENVAT credit but only duties of excise or additional duties of excise or education cess etc., have been made eligible for CENVAT credit. Sugar cess is clearly not covered in Rule 3 of CCR, 2004. However, I find that the Hon'ble High Court of Karnataka has allowed CENVAT credit on sugar cess which leaves me with no option but to follow this judgment while most r....