2019 (6) TMI 322

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.... the appellant for the months of March, 2015 and April, 2015 the officers of the department found that the appellant had wrongly availed and utilized Cenvat Credit of Education Cess (EC) and Secondary & Higher Education Cess (SHEC) to the tune of Rs. 5,34,621/- which was availed on or after 01.03.2015 but before the issue of notification 12/2015-CE (NT) dated 30.04.2015. Prior to the issue of the aforesaid notification, Rule 3(7)(b) of Cenvat Credit Rules, 2004 read as follows: "(b) CENVAT Credit in respect of - i. ...... ii. ...... iii. The education cess on excisable goods leviable under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004); iiia The secondary and Higher ....

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....se leviable under section 85 of the Finance Act, 2005 (18 of 2005) respectively, on any final products manufactured by the manufacturer or for payment of such duty on inputs themselves, if such inputs are removed as such or after being partially processed or on any output service. Provided that the credit of the education cess on excisable goods and the education cess on taxable services can be utilized, either for payment of the education cess on excisable goods or for the payment of the education cess on taxable services. Provided further that the credit of the Secondary and Higher Education Cess on excisable goods and the Secondary and Higher Education Cess on taxable services can be utilized, either for payment of the ....

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.... of excise leviable under the First Schedule to the Excise Tariff Act : Provided also that the credit of balance fifty per cent. Education Cess and Secondary and Higher Education Cess paid on capital goods received in the factory of manufacture of final product in the financial year 2014-15 can be utilized for payment of the duty of excise specified in the First Schedule to the Excise Tariff Act : Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on input services received by the manufacturer of final product on or after the 1st day of March, 2015 can be utilized for payment of the duty of excise specified in the First Schedule to the Excise Tariff Act." 5. It is the case of th....

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....dered the arguments on both sides and perused the records. The issue falls in a narrow compass. The issue to be decided is whether the notification 12/2015-CE (NT) dated 30.04.2015 which amended Rule 3(7)(b) to the effect that credit of EC & SHEC paid on inputs or capital goods received in the factory of the manufacturer of final products on or after 01.03.2015 towards payment of Basic Excise Duty will be effective for the clearances made prior to this date or otherwise. The notification does not indicate that it is intended to have retrospective application. It is now well settled legal principle that all fiscal statutes and provisions should be treated as if they have only prospective application unless the law specifically indicates othe....