TURBO ENERGY LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) BY a common order, the Commissioner disposed of two show -cause notices and hence, the applicants have filed two appeals. The applicant filed these applications for waiver of pre -deposit of CENVAT credit of Rs. 6,69,48,011/ - under Rule 14 of the CENVAT Credit Rules, 2004 read with proviso to Section 11A(1) of the Central Excise Act, 1944 and penalty of equal amount under Rule 15(2) of the CENVAT Credit Rules, 2004. The issue involved in this case, is eligibility of CENVAT credit on Education Cesses paid on CVD and the Additional Customs Duty paid under Section 3(5) of the Customs Tariff Act (SAD) in respect of the inputs received from 100% EOUs. The period of dispute is April, '07 to 6th Sept., '09. The learned counsel on behalf of the applicant submits on an identical issue, the Tribunal decided appeals in favour of the applicant. The relevant case laws are as under: - -

(2.) THE learned AR for the Revenue submits that by Notification No. 22/2009 -C.E. (N.T.), dated 7 -9 -2009, in Rule 3(7) Clause (a) of the CENVAT Credit Rules, 2004, after the proviso, another proviso was inserted. He submits that new proviso was inserted on 7 -9 -2009 allowed credit on additional duty under Section 3(5) of the Customs Tariff Act, and Educational Cesses. He also submits that this notification has no retrospective effect. He further submits that in the case of M/s. Venkateshwara Precision Components v. Commissioner of Central Excise, Chennai - [ : 2010 -TIOL -1544 -CESTAT -MAD :, 2010 (258) E.L.T. 553 (Tri. -Chennai)] on the additional duty under Section 3(5) of the Customs Tariff Act was considered.