Per Mr. VASA SESHAGIRI RAO

The present appeal arises out of Order-in-Original No. 33/COMMR/CE/2017 dated 14.12.2017 passed by the Commissioner of Central Excise & Service Tax, Trichy, whereby CENVAT credit amounting to Rs.3,63,85,392/- along with interest and penalty of Rs.2,42,57,680/- was confirmed against the appellant.

1.2 Facts briefly stated are that M/s India Cements (hereinafter referred to as “the Appellant”) is engaged in the manufacture of clinker and cement and is availing CENVAT credit under the provisions of the CENVAT Credit Rules, 2004. The dispute in the present case relates to availment of CENVAT credit on Countervailing Duty (CVD) paid on imported steam coal under Notification No. 12/2012-Cus dated 17.03.2012, as amended by Notification No. 12/2013- Cus dated 01.03.2013. The Department’s case is that the CVD paid at concessional rates of 1% / 2% under the said notification is not “equivalent to duty of excise” and, therefore, not eligible for credit under Rule 3(1)(vii) of the CENVAT Credit Rules, 2004.

1.3 Based on the above, proceedings were initiated for the period from September 2012 to J