2024 (10) TMI 803

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Appellant is engaged in the manufacture of HDPE Woven bags. During the course of audit for period April 2017 to June 2017 conducted by Central excise department it was noticed by the audit party from the scrutiny of ER1 returns that the Appellant has utilised Edu Cess credit of Rs 1,04,665/- and SHE cess Rs 52,330/- total Rs 1,56,995/- lying in balance 01-03-2015 towards payment of Central Excise Duty for The month of June 2017. The relevant part of Final Audit Report is as under:- 3. The Show cause notice SCN was adjudicated vide the Order- In-Original dated 29.01.2021 and the demand as proposed in the SCN was confirmed and penalty of equal amount was imposed under Section 11AC of the Central Excise Act, 1944. 4. On appeal befor....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....74 (Tri.-Hyd.) and prays for dismissal of this appeal. 8. The issue involved in the present case is not with regards to the admissibility of Cenvat credit but with regards to the utilization of Cenvat credit, rightly availed by the Appellant in respect of Education-cess and Higher Education-cess. Notification No.12/2015-CE(NT) dated 30.04.2015 is reproduced bellow:- "2. In the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), in rule 3, in sub-rule (7), in clause (b), after the second proviso, the following shall be substituted, namely:- "Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the factory of manufacture of f....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., I propose to subsume the Education Cess and the Secondary and Higher Education Cess in Central Excise duty. In effect, the general rate of Central Excise Duty of 12.36% including the cesses is being rounded off to 12.5%." 10. The Notification No.12/2015-CE(NT) has been issued amending the Cenvat Credit Rules as to implement the above proposed amendment in the rate of duty as per the Hon'ble Finance Minister's Speech. Accordingly, I agree with the view that the Notification No.12/2015-CE(NT) dated 30.04.2015 should be interpreted in a manner to fulfill the objective as highlighted by the Hon'ble Finance Minister in the above stated Budget Speech. Further it needs to be noted that the notification number 12/2015-CE (NT) is totally silent....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....रने पर पाया गया कि पार्टी ने कुल देय एक्साइज में से रु० 1,56,995/- का भुगतान Cenvat credit account के Ed, Cess and Sec. H. Ed. Cess के बैलेंस से किया है, जिसका विवरण निम्नलिखित है:- कुल देय एक्साइà....