Order date – 6 April 2023

Parties – M/s. Hindustan Zinc Ltd. Vs Commissioner of Central Goods & Respondent Service Tax

Facts –

• The Appellant, M/S. HINDUSTAN ZINC LTD., has utilized the CENVAT credit on account of the payment of Education Cess and SHE Cess by debiting the DEPB scrip towards the payment of central excise duty.
• The learned Counsel submitted that the Tribunal has already decided an identical issue in the appellant's favour for the subsequent period from July 2011 to December 2011.

Issue –

• 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?

Order –

• The Tribunal finds that the Customs Authorities did not bifurcate the amount towards CVD and Cess while assessing the Bill of Entry.
• As the entire disputed amount was reflected under the 'CVD' head in the Bill of Entry, the appellant is entitled to take Cenvat Credit of such amount in conformity with Rule 3 read with Rule 9 of the Cenvat Credit Rules.
• Moreover, Notification no.89/2005-Cus dated 04.10.2005 permits 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.
• Accordingly, the Appeals are allowed with consequential relief, if any, in accordance with the law.