TaxTMI 
TaxTMI 
2025 (5) TMI 1755
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....uary, 2022. The appeal was admitted on the following substantial questions of law : a) Whether the availment of Cenvat Credit of a sugar cess by respondent is irregular since, there were no provisions of the same more specifically in Rule 3 (I) of the Cenvat Credit Rules, 2004 for availament of Cenvat Credit on sugar cess ? b) Whether the Respondent is entitled to Cenvat Credit on sugar cess under sub-section (i) of Section 3 of Sugar Cess Act, 1982, since, the sugar cess on sugar was collected for development of industry and for matters connected therewith ? c) Whether the Learned Tribunal erred in law in not holding that once the SLP has been filed before the said Hon'ble Supreme Court of India and the same has entertained, the ju....
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....016, has been disposed of as not pressed on the ground that the appeal falls below the threshold contained in the Circular dated August 22, 2019 of the Central Board of Indirect Tax and Customs. Thus, as on date, the decision rendered by the Hon'ble Division Bench of the High Court of Karnataka in the case of Shree Renuka Sugars Ltd. (supra) holds the field. The issue which came up for consideration in the case of Shree Renuka Sugars Ltd., is identical to the questions of law raised in this appeal which have been admitted, they being whether the entitled for Cenvat Credit on Sugar Cess levied under section 3 (4) of the Sugar Cess Act, 1982 on the ground that the revenue contended that it is not one of the duties allowed for Cenvat Credit un....
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....ee or tax. After elaborate discussions and after referring to several decisions of the Hon'ble Supreme Court including the Constitutional Bench of the Hon'ble Supreme Court it was held that the traditional view that there must be actual quid pro quo for fee has undergone a sea change in the recent years. The tax recovered by a public authority invariably goes into the Consolidated Fund, which ultimately is utilized for public purposes; whereas a cess levied by way of fee is not intended to be and does not become a part of the Consolidated Fund. Thereafter, the Court took into consideration Article 266 ad 270 of the Constitution of India and with the following reasoning it was held that the sugar cess paid under the Act is tax and to be p....
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....e Cenvat Credit Rules. This issue was answered by the Court after taking into consideration Section 3 of the Central Excise Act, 1944 which is the charging section and the other provisions of the Act and the Cenvat Credit Rules and it was held that excise duty is leviable under the Central Excise Act and also the Sugar Cess Act, 1982. Paragraph 35 of the judgment is quoted below : "In view of the aforesaid provisions, when an assessee imports goods into India in addition to payment of basic Customs Duty, he shall be liable to pay additional duty of customs equal to the excise duty for the time being leviable on a like article if produced or manufactured in India and if such excise duty on a like article is leviable at any percentage of i....