TaxTMI 
TaxTMI 
2026 (9) TMI 470
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....2011 to September 2015, the respondent availed CENVAT credit of CVD amounting to Rs.1,60,20,657/- paid on imported steam coal. The Department took the view that CVD paid at the rate of 1%/2% ad valorem on the imported steam coal was not admissible as CENVAT credit, in contravention of Rule 3 of the CCR 2004. Accordingly, Show Cause Notice dated 02.02.2016 was issued proposing recovery of the said amount under Rule 14 of the CCR 2004 read with Section 11A(4) of the Central Excise Act, 1944, along with interest and penalty. A further Statement of Demand dated 01.11.2016 was issued for the period October 2015 to March 2016, proposing recovery of Rs.6,66,356/- on the same ground, along with interest and penalty. After adjudication, the Adjudicating Authority confirmed CENVAT credit demand of Rs.84,65,519/- under Rule 14 of the CCR 2004 read with Section 11A(10) of the Central Excise Act, 1944, along with an equal penalty under Rule 15(2) of the CCR 2004 read with Section 11AC(1)(c) of the said Act, and dropped the proceedings in respect of the balance demand. Aggrieved by the confirmation of demand, interest and penalty, the respondent preferred an appeal before the Commissioner (Appea....
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....CR, 2004. B. Rule 3(1)(vii) of the CCR, 2004 has no application. Customs and Central Excise exemption notifications operate independently, and the Customs notification did not restrict or prohibit availment of CENVAT credit of the 2% CVD paid. No condition or restriction not contained in the notification can be read into it, nor can a tax liability be imposed on the basis of inference, analogy or assumption. C. The issue was also clarified in the Regional Advisory Committee Meeting held at Hyderabad on 09.02.2015. Further, the Orders-in-Original relied upon by the Department have already been set aside by the Tribunal in M/s JSW Steel Ltd. - Final Order F. No. 40716/2021 dated 13.01.2021, M/s Seshasayee Paper and Boards Ltd. - Final Order Nos. 40021 & 40022 dated 08.01.2026, and other similar orders of the Chennai Bench, including Chettinad Cements - Final Order Nos. 40586 to 40588/2024 dated 31.05.2024. D. Accordingly, the Department's appeal deserves to be rejected as unsustainable in law and on facts. Extract from the Order-in-Appeal 4. We have gone through the impugned order and find the order to be reasoned, legal and proper. Relevant paragraph....
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....s. 07.07 Under Customs Notification No. 12/2012-Cus dated 17.3.2012 as amended by Notification No. 12/2013Cus dated 01.03.2013 which was issued under Section 25 of the Customs Act, 1962, imported steam coal attracts CVD @ 2%. The preamble of the Notn. No. 12/2012-Cus clearly states that goods described in the notification falling within the chapter, heading, sub-heading or tariff item of the first schedule to the Customs Tariff Act, 1975 are exempt from duty of customs leviable thereon under the First Schedule to the Tariff as in excess of duty specified in column 4 of the table and so much of the additional duty (CVD) leviable under Section 3 of the Act as in excess of the additional duty rate specified in the corresponding column 5 of the table. Since there is no condition in the customs notification under which 2% CVD has been paid, the LAA cannot bind the appellant with any condition which is absent both in CENVAT Credit Rules and in the customs notification. There is no provision under any law to charge CVD under customs notification and impose conditions as per Central Excise notification. 07.08 Further, it is not out of place to mention here that only for t....
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....xpress terms and not proper in law to contend that, such a restriction or prohibition is implied. 5. We find that the dispute has been examined by a Coordinate Bench of this Tribunal recently in M/s Seshasayee Paper and Boards Ltd. Vs Commissioner of GST and Central Excise (supra). The Order examines the issue in detail and relevant paragraphs are extracted below: "7. We have heard the rival submissions advanced by both the sides and have carefully perused the appeal records, the impugned orders, the statutory provisions and the case Laws relied upon by the Appellant as well as the Respondent. Upon consideration of the entire material on record, the following issues arise for our determination as to: - i. Whether CENVAT credit of 1% / 2% CVD paid on imported steam coal is admissible under Rule 3(1)(vii) of CCR, 2004? ii. Whether conditions in Central Excise exemption notifications can be imported into Customs notifications? iii. Whether the extended period under Section 11A (4) is invocable? iv. Whether penalty under Rule 15(2) read with Section 11AC is sustainable? ***** ***** ***** 9.3 We have heard both the sides. We fi....
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....d. V.CCE, 2020 (10) TMI 1032 - CESTAT vi. Commissioner of CGST & CE, Jodhpur v. M/s. J.K. Lakshmi Cement Ltd. 2024 (1) TMI 769 CESTAT vii. NALCO Ltd. v. CCE, 2025 (1) TMI 526 - CESTAT Kolkota viii. M/s. Jindal Steel &s Power Ltd. v. Commissioner of Central Tax, GST & CEx., Rourkela 2025 (4) TMI 880 CESTAT Kolkota 10.5 We have perused the above decisions and find that the very same issue has been examined and decided in favour of Appellant in a series of judgments, including those of this Bench. 10.6 From the above judicial pronouncements, we find that the issue involved in the present appeals is no longer res integra. The consistent view taken by this Tribunal as well as affirmed by the Hon'ble Calcutta High Court is that CENVAT credit of 1% / 2% Additional Duty of Customs (CVD) paid on imported coal is admissible under Rule 3(1)(vii) of the CENVAT Credit Rules, 2004, and that conditions prescribed under Central Excise exemption notifications cannot be imported into or superimposed upon Customs notifications for the purpose of denial of such credit. 10.7 In Shyam Steel Industries Ltd. [2022 (382) ELT 329 (Cal.)], the Hon'ble Hig....