2026 (7) TMI 834

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....n to transfer the Edu Cess and SHE cess to the Cenvat account, the Revenue issued SCN on 12.01.2017, demanding Excise Duty of Rs.68,289/- along interest and seeking to impose penalty under Rule 15 (1) of CCR 2004. After due process, the Adjudicating authority confirmed the demand, which came to be affirmed by the Commissioner (Appeals). Hence, the present appeal before the Tribunal. 2. The Authorized Representative of the appellant submits that the Education cess and SHE cess are part of the Excise Duty only. Therefore, on the ground that they get subsumed with effect from 1st May 2015, they have transferred the balance available in these accounts to the Cenvat account. He submits that at that time they were carrying more than Rs.4 crore....

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....the excise duty and Service Tax, and therefore, the amount lying in the credit towards EC and SHE should be available for availing CENVAT credit. This was not a case of abolition of EC and SHE, but the cesses were added and became part of the Excise Duty or Service Tax. Reliance is placed on the dictionary definition of the term "subsumed", which means to include, absorb in something else or incorporated into something larger or more general. 9. The first aspect to be examined is the statutory effect of withdrawal of EC and SHE on excisable goods and taxable services with effect from 1st March, 2015 and 1st June, 2015 respectively, pursuant to the Finance Act, 2015. By Notification No. 14/2015-CE, dated 1st March, 2015, the Central....

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....present case, credit of EC and SHE could be only allowed against EC and SHE and could not be cross-utilized against the excise duty or Service Tax. In fact, what the petitioners seek is an amendment of the scheme to allow them to take cross-utilization of the unutilized EC and SHE upon the two cesses being withdrawn against excise duty and Service Tax, though this was not the position even earlier. Both EC and SHE were withdrawn and abolished. They ceased to be payable. In these circumstances, it is not possible to accept the contention that a vested right or claim existed and legal issue is covered against the respondents by the decision in Eicher Motors Limited and Another (supra) and Samtel India Limited (supra). The said decisions are d....