CESTAT Allows Cenvat Credit of 2% CVD Paid On Import Of Steam Coal

The appellant/department has assailed four different orders passed by the Commissioner (Appeals) in four appeals by which the Commissioner (Appeals) allowed the appeals filed by the assessee and set aside the orders of the adjudicating authority disallowing the Cenvat credit.

The assessees have availed Cenvat credit in respect of 1%/2% CVD paid as per Notification No. 12/2012-Cus.

The issue raised was whether Cenvat credit of 2% CVD paid on import of steam coal is admissible to the assessee/respondents in accordance with Notification No. 12/2012-Cus dated 17/03/2012, in terms of the embargo contained under Rule 3 of the Cenvat Credit Rules, 2004.

The department submitted that the assessee has availed Cenvat credit of additional duty paid at the rate of 1% or 2% on imported coal leviable under Section 3 of the Customs Tariff Act, 1975 (CVD) under Notification No. 12/2012-Cus dated 17/03/2012 as amended by Notification No. 12/2013-Cus dated 01/03/2013. The cenvat credit is not available to the manufacturer importer under the Cenvat Credit Rules, 2004 as it is not a specified rate of duty prescribed under the Central Excise Tariff Act, 1985.

The CESTAT held that there was no bar in respect of CVD paid under Customs Notification No.12/2012-Cus. Therefore, the assessee/respondents are eligible for Cenvat credit in respect of 1% or 2% CVD, as the case may be, paid under Notification No. 12/2012-Cus.

The tribunal dismissed the appeal of the department.

Case Title: Commissioner of Central Excise And Customs, Central Goods And Service Tax Versus M/s Shree Cement Ltd

Citation: Excise Early Hearing Application No. 50228 of 2020 in Excise Appeal No. 51032 of 2019

Dated: 21.07.2022

Counsel For Appellant: Authorised Representative Rakesh Agarwal

Counsel For Respondent: Advocate Arjun Raghavender

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