CESTAT ALLOWS CENVAT CREDIT OF 2% CVD PAID ON IMPORT OF STEAM COAL

The Delhi High Court in the case Commissioner of Central Excise And Customs, Central Goods And Service Tax Versus M/s Shree Cement Ltd observed, the Excise and Service Tax Appellate Tribunal (CESTAT) bench comprising of Ajay Sharma (Judicial Member) and P.V. Subba Rao (Technical Member) has allowed the Cenvat credit of 2% CVD paid on the import of steam coal.

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

The Cenvat credit in respect of 1%/2% CVD paid as per Notification No. 12/2012-Cus, has been availed by the assesses.

In the present case, 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 as stated under Rule 3 of the Cenvat Credit Rules, 2004.

It was submitted by the department 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 Number. 12/2012-Cus dated 17/03/2012 as amended by Notification Number. 12/2013-Cus dated 01/03/2013 and that the cenvat credit is not available to t2 %he manufacturer importer under the Cenvat Credit Rules, 2004 as rate of duty is not specified as stated under the Central Excise Tariff Act, 1985.

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

The tribunal dismissed the appeal of the department.