Education Cess & Secondary and Heigher Education cess

[SNEHAL SHAH]

R/sir,

We are the Manufacturing of pharma product and as per Central Excise duty structure change in budget 2015 from 12.36 to 12.50 % , In our Cenvat Credit Account ( A + C ) balance as under :

1) 2% -- 400000/-

2)1% -- 200000/-

How we can utilize these balance - Either By Refund or any other procedure ..

Please guide to us .

Thanks and regards,

SNEHAL SHAH

[MUKUND THAKKAR]

There is no notification for either lapsing of the credit or for refund of the accumulated credit on account of the Education / SHE Cess.
However, the credit can be continued to held in the books of accounts and can be used for payment of Education / SHE Cess on taxable services provided, if any, if permitted under the CENVAT Credit Rules.
 

[DR.MARIAPPAN GOVINDARAJAN]

We may hope that notification will come in this regard. It is better to represent to the board by the stakeholders in this regard.

AI Summary

Education cess credit may be retained and used under CENVAT Credit Rules; no notification mandates refund. No notification mandates lapse or refund of accumulated Education or SHE Cess credits; such credits may be retained and, insofar as permitted by the CENVAT Credit Rules, applied to meet education/SHE cess liabilities on taxable services, and stakeholders may represent to the Board for formal guidance.