Ed.Cess & SH Cess credit to be taken or not

[Ramakrishnan Seshadri]

Dear Sir,

We are the manufacturers of automobile parts. We used to purchase paints for our paint shop.

One of our supplier has supplied the materials in the month of March 2015 by charging Cess and SH.Cess in their invoices. We have not taken credit of the Cess and SH.Cess. Hence we have not made payment of this. Now the supplier is asking payment for the Ed.Cess and SH.Cess claimed in their invoices. They also informed that the invoices were raised from Duty paid Godown and they are removing the goods as such. Since the materials are pertaining to February 2015 stock they are charging Ed.Cess and SH.cess. Whether their method is correct. Shall we take credit or what to do.

What is the procedure.

Kindly experts give your views in this issue.

Thanks and Regards,

S.Ramakrishnan.

AI Summary

Manufacturer Questions Legitimacy of Education Cess Charges on Pre-March 2015 Purchases; Credit Utilization Remains Unclear A manufacturer of automobile parts queried about the legitimacy of being charged Education Cess and Secondary and Higher Education Cess on materials purchased in March 2015, as these cesses were exempted from March 1, 2015. Several respondents confirmed that the cesses were payable until February 28, 2015, and advised that the manufacturer could take credit for these cesses but not utilize them due to the exemption. It was noted that a recent notification allowed the utilization of such credits for excise duty on inputs and capital goods received after March 1, 2015, but the use of credits from before this date remained unclear.