about input as such(2% & 1%)

[MEHUL ASHAR]

Respected Sir,

As regarding above subject one my clients has recd. the a sales return with the buyer's invoice with 2% and 1% on BED now the question arises that can I take the credit of 2% and 1% in the month of march-2015 or not.

THANKING U

[Rajagopalan Ranganathan]

Sir,

Since it is sales return you can take the credit in your credit account. In view of the exemption given to Edu. Cess and S and H Edu, Cess under Notification No. 14 and 15 of 2015-CE dated 28.2.2015 you cannot utilise the credit for clearance of excisable goods after repairing, remaking etc.

[MUKUND THAKKAR]

Sir,

agree with suggested by Mr. Rajagopalan Ranganathan, In case of if you clear In put as such than 2% and 1% is applicable.

[MEHUL ASHAR]

THANK U SIR U SOLVED MY CONFUSION.I M GRATEFUL 2 U

AI Summary

Credit of education cess and secondary and higher education cess allowed on sales returns, but utilisation is restricted for post-repair clearances.
Credit arising from a sales return may be taken into the credit account, but exemptions introduced by notifications of 28 February 2015 prevent utilisation of credited education cess and secondary and higher education cess for clearances after repairing or remaking; where inputs are cleared as such, the cesses apply and credit treatment is relevant.