2026-VIL-1558-CESTAT-CHE-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Admissibility of CENVAT credit on Countervailing Duty paid on imported coal - The Respondent-assessee availed CENVAT credit of CVD paid at concessional rate of 1%/2% on imported steam coal under Customs Notification No. 12/2012-Cus - Department contended that CVD paid at concessional rate was not admissible as CENVAT credit in contravention of Rule 3 CENVAT Credit Rules 2004 - Department sought to import conditions from Central Excise exemption notifications into Customs notifications to deny credit - Whether CENVAT credit of CVD paid at concessional rate on imported steam coal is admissible under Rule 3(1)(vii) CCR 2004 and whether conditions in Central Excise exemption notifications can be read into Customs notifications - HELD - Rule 3(1)(vii) CCR 2004 provides that additional duty leviable under Section 3 of the Customs Tariff Act 1975 is eligible for credit. CVD is a customs duty measured with reference to excise duty but retains its character as a customs duty under Customs Tariff Act. The rule contains no qualification that credit is admissible only if CVD is paid at tariff rate and not at concessional rate - The proviso to Rule 3(1)(i) applies exclusively to duty of excise paid under specific Central Excise notifications and not to CVD. Customs Notification No. 12/2012-Cus does not prescribe any condition barring availment of credit on CVD. It is settled law that exemption notifications must be interpreted strictly and no additional conditions can be implied. Conditions cannot be read into a notification when none exist. It is impermissible in law to read conditions from one notification into another, particularly across two different taxing statutes - The conditions prescribed under Central Excise exemption notifications cannot be imported into Customs notifications - CENVAT credit of CVD paid on imported steam coal under Customs Notification No. 12/2012-Cus at concessional rate of 2% is legally admissible - The Department's appeal is rejected
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