In Excise Appeal No.52263, 52264 and 52265 of 2022 (SM)-CESTAT- Entire disputed amount reflected under the ‘CVD’ head in the Bill of Entry, has been rightly availed as Cenvant credit, rules CESTAT (New Delhi)
Member Ajay Sharma (Judicial) [06-04-2023]

Read Order: Hindustan Zinc Ltd v. Commissioner of Central Goods & Service Tax

Chahat Varma

New Delhi, April 20, 2023: The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, while hearing an appeal that whether the appellants are entitled to utilise Cenvat credit on account of Education Cess and SHE Cess paid through DEPB scrips towards payment of central excise duty in terms of Rule 3(7)(b) of Cenvat Credit Rules, 2004, has ruled that the total amount shown under the ‘CVD’ head in the Bill of Entry, has been correctly availed as Cenvat credit.

It was brought to the notice of the Tribunal that an identical issue for the subsequent period i.e. from July, 2011 to December, 2011 in appellants’ own case has been decided by this Tribunal in favour of the appellant vide Final Order No.56523 of 2016 dated 15.07.2016 in Excise Appeal No.E/52892 of 2015 (SM).

In the said order, the Tribunal observed that “since the entire disputed amount was reflected under the ‘CVD’ head in the Bill of Entry, taking of Cenvat Credit of such amount is in conformity with Rule 3 read with Rule 9 of the Cenvat Credit Rules. Further, I also find that the Notification no.89/2005-Cus dated 04.10.2005 has specifically permitted an importer to avail Cenvat Credit of additional duty leviable under Section 3 of the Customs Tariff Act against the amount debited in the Duty Entitlement Passbook Script. Since, no provisions of the Cenvat Statute have been contravened in this case, I am of the view that taking of disputed Cenvat Credit by the appellant is proper and justified.”

Holding the issue to be no more res integra in view of the aforesaid decision, the appeals filed by the appellant were allowed by the Tribunal.