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

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting 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.

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.

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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.

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