TaxTMI 
TaxTMI 
Dear Sir,
Good Morning
Pl. advice we can utilize payment of Education Cess and S H Education Cess from Excise Cenvat Account 12 percent or Service TAx 12 percent .
PL. advice
Thanks & Regards
RajKumar
cenvat utilization
20 Mar 2014 
6 Replies 
2016 Views Asked by
Cenvat credit limitation: Education cess credit may be used only to discharge education cess, not other duties or service tax.
Credit of education cess in the Cenvat account can be utilised only to discharge education cess (including secondary and higher education cess) and not to pay basic excise duty, service tax or other duties; credits permitted under general utilisation rules may fund payment of education cesses, but the reverse cross utilisation is not allowed. The proviso based restriction operates notwithstanding broader sub rules on credit usage, and judicial authorities have reached conflicting conclusions on this point. (AI Summary)
Credit of education cess in the Cenvat account can be utilised only to discharge education cess (including secondary and higher education cess) and not to pay basic excise duty, service tax or other duties; credits permitted under general utilisation rules may fund payment of education cesses, but the reverse cross utilisation is not allowed. The proviso based restriction operates notwithstanding broader sub rules on credit usage, and judicial authorities have reached conflicting conclusions on this point. (AI Summary)