2025 (8) TMI 607

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.... demand of CENVAT credit of Rs.62,40,000/- along with interest under Rule 14 of the Cenvat Credit Rules, 2004 and also imposed an equal penalty under Rule 15 of the Cenvat Credit Rules, 2004; further, the learned Commissioner has also confirmed the demand of sugar cess of Rs.23,68,872/- under Section 11A of the Central Excise Act, 1944 along with interest under Section 11AB of the Act and also imposed an equal penalty under Section 11AC of the Act. 2. Briefly stated facts of the present case are that the appellant is engaged in manufacturing of sugar. In year 2010, the appellant imported raw sugar under ex-bond bill of entry no. 219 dated 23.02.2010 and paid the sugar cess thereon at the rate Rs.24/- per quintal of sugar. The sugar cess ....

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.... submits that the appellant has paid the sugar cess on imported raw sugar under the Sugar Cess Act, 1982 where it is specifically mentioned that it is a duty of excise and all the provisions of Excise Act will be applicable to sugar cess. He also submits that the Cenvat Credit Rules are also applicable to the Sugar Cess Act, 1982. He further submits that the sugar cess was paid and collected as a duty of excise under Section 3(1) of the Sugar Cess Act, 1982. 4.2 The learned Counsel also submits that this issue is no more res integra and has been decided by the Tribunal in the case of Shree Renuka Sugars Ltd vs. Commissioner of C.Ex., Belgaum - 2007 (218) ELT 388 (Tri. Bang.) wherein the identical issue was dealt with by the Tribunal and ....

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....ugars Ltd (supra), the Revenue has filed appeal before the Hon'ble Apex Court and the appeal has been admitted by the Apex Court as reported in Commissioner vs. Shree Renuka Sugars Ltd - 2016 (335) ELT A77 (SC). 6. After considering the submissions made by both the parties and perusal of the material on record, we find that the only issue involved in the present case is whether the appellant is entitled to avail the CENVAT credit of the sugar cess paid on imported raw sugar or not? We find that this issue is no more res integra and has been settled by the Hon'ble High Court of Karnataka in the case of Commissioner of C.Ex., Belgaum vs. Shree Renuka Sugars Ltd (supra) wherein the Hon'ble High Court has held that levy and collection of ces....

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.... 2 of the Customs Act is not eligible for Cenvat credit, the additional duty paid and payable under the Customs Tariff Act, 1975 are eligible for Cenvat credit as is clear from clause (vii) of sub-rule (1) of Rule 3 of the Cenvat Credit Rules, 2004. It is that additional customs duty collected under Section 3 of the Customs Tariff Act, 1975, which is referred to as the excise duty under the Central Excise Act, 1944 and also the Sugar Cess Act, 1982. 40. In the instant case, it is not in dispute that this duty of excise is not collected as a cess at the time of production of the sugar in the assessee's sugar factory in India. It is not also in dispute that it is also collected at the time of importing raw sugar. At the time of impor....