treatment of balance Edu. Cess & H.Edu. Cess

[Asked by Guest]

Dear Experts,

we are manufacturer of dutiable goods and we are taking input credit of Raw Material , service tax etc. which are acceptable as per cenvat credit rules.but we have credit balance of Raw Material and service tax in Edu. Cess & H. Ed.Cess and at present time some Dealer who passes their old material with charging Edu. Cess & H.Edu. Cess these credit balance still we have not utilised after 01/04/2015 so now what is the way ?? can we utilise against basic ex.duty ? or some other way ?

pls. let me know and clear my confusion..

regards,

Manan Pandya.

[YAGAY and SUN]

You can utilized it if the goods are being received on or after 01 March 2015. It has been notified and clarified by the Board. Accumulated SHE and EDCESS cannot be utilized.

[vasudevan unnikrishnan]

Yes credit of cesses on receipts after 1/3/2015 only can be used for payment of new basic duty. Let the balance be kept and carry forward, so that future demands can be adjusted...

thank you experts for your value able reply.

AI Summary

Education cess credit use limited: only credits on receipts after 1 March 2015 may offset basic excise duty.
Only cenvat credits of education cess and higher education cess that arise on receipts dated on or after 01 March 2015 may be utilised against basic excise duty per Board clarification; accumulated cess balances not meeting that receipt date condition may not be applied and should be carried forward for adjustment against future liabilities.