Welspun Corp Limited Vs C.C.E. & S.T (CESTAT Ahmedabad)
Introduction:
In a significant verdict that benefits industry at large, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad has allowed Welspun Corp Limited to utilize the cenvat credit of basic excise duty for the payment of Education Cess and Secondary Higher Education Cess. This ruling serves as a remarkable precedent for other companies facing similar situations.
Analysis:
The argument at the core of this case was whether the appellant, Welspun Corp Limited, could utilize cenvat credit of basic excise duty to offset payments of education cess and secondary higher education cess. While the counsel for the appellant argued in favor, presenting previous judgments to back the claim, the representative for the Revenue held firm on the findings of the impugned order.
However, the Tribunal found that multiple past rulings indicated that the assessee is indeed entitled to utilize the cenvat credit of basic excise duty for payment of the cesses in question. Among the judgments highlighted were M/S ASR MULTIMETALS P. LTD VS. CCE & ST RAJKOT, MONO STEEL INDIA LTD VS. CCE, and several others.
Given the weight of evidence supporting the appellant’s claim, the Tribunal concluded that the appellant is entitled to utilize Cenvat credit of basic excise duty for payment of Education Cess and Secondary and Higher Education Cess.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The issue involved in the present case is that whether the appellant is entitle to utilize the cenvat credit of basic excise duty for payment of education cess and secondary higher education cess.
2. Shri R. Subramanya, Learned Counsel appearing on behalf of the appellant submits that this issue has been settled in the following judgments:-
