2026 (4) TMI 1820

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on ore, Coal Steam Coal) and dolomite, as inputs. During the period from 2015-16 to 2016-17, the respondent has procured coal from outside the territory of India / registered importers for use in or in relation to manufacture of sponge iron and has claimed credit of CVD paid, of Rs.1,54,65,803/-. The CVD was paid at a concessional rate of 2% under Customs Tariff Notification No. 12/2012-Cus. [Sl. No. 123] dated 17.03.2012, as amended by Customs Tariff Notification No. 12/2013-Cus. dated 01.03.2013. Pursuant to the audit for the impugned period, on 06.06.2017 to 08.06.2017, a Spot Memo was issued on 22.06.2017, wherein it was observed that the respondent had availed CENVAT Credit of CVD paid at the concessional rate of 2% on imported coal....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Tariff Act is allowable if the same is equivalent to the duty of excise specified under the first schedule to the Central Excise Tariff Act, 1985; that the additional duty of Customs was paid at the concessional rate at the rate of 1%/2% by virtue of Notification No.12/2012-Cus. dated 17.03.2012, as amended by Notification No.12/2013-Cus. dated 01.03.2013. 8. It is his contention that the said payment of duty at the concessional rate does not fulfil the condition prescribed under Rule 3(1)(vii) of the said Rules, inasmuch as the quantum of the same should be equivalent to the duty of excise specified in the first schedule to the Central Excise Tariff Act, 1985; the duty of excise on the coal imported by the respondent, as specified in th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Notification No. 12/2012-Cus. dated 17.03.2012 [Sl. No. 123]. 11. The embargo under the proviso to Rule 3(1)(i) of the erstwhile CENVAT Credit Rules, 2004 is not attracted to CVD paid at concessional rate under the Customs Tariff Act; under Rule 3 of the CENVAT Credit Rules, 2004, the restriction for availing CENVAT Credit is in respect of concessional rate of central excise duty (not CVD) paid under Central Excise Tariff Notification No. 12/2012-C.E. dated 13.03.2012 [Sl. No. 67], as amended, which are procured from domestic manufacturers / producers, and not in respect of Customs Tariff Notification No. 12/2012-Cus. dated 17.03.2012, as amended, for payment of duty at the concessional rate of 2% ad valorem, on coal imported from outsid....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ntion of the Appellant that there is no room for any intendment in taxing statutes which deserves a strict interpretation. Even otherwise generally applied rate of CVD (1% upto 28 February, 2013 and 2% thereafter under the Customs notification) and the concessional excise duty rate on domestically manufactured goods (1% all throughout without Cenvat under the excise notification) were not uniform and in any event, the expression "equivalent" appearing in Rule 3(1)(vii) of the CCR for quantification of CVD could not be restricted ignoring the tariff rate of excise duty of 6% on domestically manufactured coal. We also find that the said issue is squarely covered by the decision of the Tribunal in the case of M/s. Jaypee Sidhi Cement Plant (su....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lco Industries Ltd. v. GST, Bhopal as was pronounced in Appeal No. e/50179/2018-SM vide Final Order No. 50876/2018, dated 8-3-2018. Reliance has also been placed on another decision of the Tribunal in the case of Asahi Songwon Colors Ltd. v. CCE & ST, Vadodara Appeal No. E/10635/2017-SM vide Final Order No. A/11585/2018 (Ahmd), dated 9-7-2018. Therefore, the order in challenge is prayed to be set aside and appeal is prayed to be allowed. 5. Learned Departmental Representative justified the orders. 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 cust....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....credit of duty of excise is not allowed to be taken when paid on any goods specified under S. No. 67 and 128 of Excise Notification No. 12/2012, dated 17-3-2012. Admittedly, the notification relied upon by the department for denying the impugned benefit to the appellant is Customs Notification No. 12/2012, dated 17-3-2012. The restriction of Rule 3 is not applicable to the said notification. Above all, the Hon'ble Supreme Court in the case of SRF Ltd. v. CC, Chennai [2015 (318) E.L.T. 607 (S.C.)] has held that Excise Notification No. 12/2012 is applicable only in respect of any digged or manufactured coal and not in respect of imported coal. The import whereof is allowed to have exempted rate of CVD vide Customs Notification No. 12/2012-Cus....