AI Drafter 
TaxTMI 
TaxTMI 
2022 (1) TMI 1121
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....dit-I Commissionerate for the month of February 2015, it was noticed that the appellant was having CENVAT Credit closing balance of Rs. 3,70,471/- on account of Excise Duty, Rs. 5,60,612/- on account of Education Cess and Rs. 2,78,301 on account of Secondary and Higher Education Cess. However, it appeared that in the month of May 2017, the appellant had merged the two balances of Education Cess and Secondary and Higher Education Cess with the balance of Excise Duty Credit and utilized the same for payment of Central Excise Duty liability. As per Notification No. 14/2015-C.E.(N.T.) dated 01.03.2015 and Notification No. 15/2015-C.E.(N.T.) dated 01.03.2015, the Education Cess and Secondary and Higher Education Cess respectively were abolished ....
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....38,913/- in their CENVAT account pertaining to Education Cess and Secondary and Higher Education Cess [Rs. 5,60,612/- plus Rs. 2,78,301/-]. That the levy of Education and Higher Education Cess was abolished by the Government with effect from April 2015 by issuing Notification Nos. 14 and 15 of 2015-C.E.(N.T.) both dated 01.03.2015. Consequent amendments were made to sub-rule (7) to Rule 3 of the CENVAT Credit Rules, 2004, which permitted utilization of the credit of Education Cess and Secondary and Higher Education Cess paid on inputs and input services by the manufacturer of final products on or after the first day of March 2015. The amendment inserted the following three provisos, which are as under: "Provided also that the credi....
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....effect from 01.07.2017, the appellant utilized the aforesaid balance of Education Cess and Secondary and Higher Education Cess credit lying in their CENVAT account as on May 2017 for the payment of Duty on the clearance of their final products during the month of May 2017; that the appellant had also filed the ER-1 returns for the said month within the due date as on 10.06.2017 with their jurisdictional authorities, clearly reporting the said fact of utilization. The unit of the appellant was visited by the audit officers during September and November 2019, who raised the objection disputing the above utilization by the appellants. The appellant filed a detailed reply dated 10.12.2019 explaining the facts and law involved and clarifying the....
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....ayable on tractor parts cleared during the said month of May 2017 is Rs. 1,49,89,838/- (Column No. 4 of the return). In the return, in Column No. 5, which is meant to provide CENVAT details, the appellant has shown that out of the total credit of Rs. 3,39,23,423/-, an amount of Rs. 1,49,89,838/-, which included Education Cess and Secondary and Higher Education Cess credit of Rs. 8,27,068/-, was utilized for payment of Excise Duty. That the appellant having declared the utilization of the Cess credit for the payment of Duty in their ER-1 returns, the Show Cause Notice issued after two years alleging suppression of facts with intent to evade payment of duty cannot sustain. He submitted that there is no room for maintaining such allegation of ....
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....ation would not have come to light, but for the audit conducted by the Department. This proves that the appellant has wilfully suppressed facts with the intention to evade payment of duty and hence, the demand raised invoking the extended period of limitation is legal and proper. 4.3 She prayed to dismiss the appeal. 5. Heard both sides. 6. The issue that has to be decided is whether the Cess credit which is utilized after 01.03.2015 for payment of Central Excise Duty is legal and proper. 7. The issue stands covered by the decision of the Hon'ble High Court of Delhi in the case of M/s. Cellular Operators Association of India (supra) wherein the Hon'ble High Court has analysed the various contentions and held that Cess credit can....
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.... causes some hardship to the appellant inasmuch as some credit lying in balance cannot be used because of the rule position. However, any provisions of fiscal laws or criminal laws should be read as such with no scope for intendment regardless of the consequences as has been held by the Constitutional Bench of Hon'ble Apex Court in para 25 of the judgment in the case of Dilip Kumar (Civil Appeal No. 3327 of 2007). A plain reading of the Cenvat Credit Rules as they existed during the relevant period did not allow the appellant to utilise credit of educational cess and secondary and higher education cess lying in balance for payment of basic excise duty. Consequently, I find there is no infirmity in the impugned order which needs to be up....