TaxTMI 
TaxTMI 
2024 (6) TMI 13
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....t is engaged in manufacture of Clinker and Cement and are registered with the Central Excise department. The appellant imported Steam Coal and used the same in generation of steam/electricity which in turn was used in relation to the manufacture of their final product. Steam coal falls under Tariff Item 27011920 of the First Schedule of Central Excise Tariff Act 1985. From 01.03.2011, Steam Coal was attracting Central Excise duty at the rate of 5% adv. (Tariff Rate) vide Notification No.02/2011-CE dated 01.03.2011. However, concessional rate of 1% adv. also was available under Notification No.01/2011-CE dated 01.03.2011 (Sl. No. 28) subject to the condition that CENVAT Credit of Central Excise duty paid on inputs or Service Tax paid on inpu....
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....qual to excise duty rate. However, in respect of these 130 items, there are two excise duty rates. It needs to be appreciated that if CVD is levied @ 1%, the protection for the domestic manufacturer would be lost since in the country of origin, the overseas supplier enjoys input tax neutralization on goods exported to India (akin to availment of input tax credit), whereas on the other hand the domestic manufacturer suffers all the input taxes and 1% excise duty over and above that. Since 5% excise duty rate is payable when the Cenvat credit of duties and taxes paid on inputs and input services is availed of, the tax treatment becomes equitable with the goods being imported into India, the input taxes having been neutralized in the country o....
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.... Central Excise Act, the proviso to the said clause debarred taking of Cenvat credit of the duty of excise paid at 2% adv. availing an exemption under Notification No.01/2011- CE or paid at the rate of 1% adv. on the goods specified in Sl. No.67 or 128 of Notification No.12/2012-CE, dated 17.03.2012 availing the benefit of exemption under said notification. 7. From the above, the department was of the view that CENVAT Credit of duties of excise paid on the input, Steam Coal can be allowed to be taken only if it is paid at the Tariff Rate of 6% adv. and not if it is paid at the concessional rate of 1% adv. availing exemption under Notification No.12/2012 - CE or earlier Notifications. Therefore, in the case of Steam Coal used as an input by....
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....us dated 17.03.2012 as amended. In fact, Rule 3 of CCR 2004 restricts only the Cenvat credit of duties of excise paid in terms of Notification No.12/2012-CE dated 17.03.2012. 10. The issue stands covered by the decision in the appellant's own case, M/s. Chettinad Cements Corporation Pvt Limited versus Commissioner of GST and Central Excise, Trichy vide Final order No. 40972/2023 dated 26.10.2023. The Ld. Consultant prayed that the appeals may be allowed. 11. The Ld. AR Shri. M. Selvakumar appeared and argued for the department. The discussions in para 22.06 to 24 in appeal No. E-40639/2019 was adverted to and reiterated by the authorised representative. 12. Heard both sides. 13. The issue to be analysed is whether appellant is eligi....
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....ssue stands decided in the decision of Hindustan Zinc Ltd. (supra). The relevant paragraphs of said decision are reproduced as under : "6. After hearing both the parties and perusing the record, we are of the opinion as follows : It is admitted that the appellants have imported coal consequent thereto they have paid 1%/2% on CVD in addition to Basic customs duty. The CVD has been paid at the said exempted rate taking the benefit of Sl. No. 123 of Customs Notification No. 12/2012-Cus., dated 17-3-2012. It is apparent from the order in challenge that Department has denied the payment of CVD on exempted rate and the availment of Cenvat credit thereupon relying upon the S. No. 67 of Excise Notification No. 12/2012, dated 17-3-2012. 7. P....