Sugar Cess can be adjusted against Cenvat - BED

[Mehul Pandya]

Dear Experts,

Can we utilise Cenvat Credit (Basic Excise Duty) for payment of Sugar Cess. If yes can we claim rebate for the same ?

Pl. quote if you have any reference noti./ rule etc.

Thank you for your valuable opinion.

AI Summary

Cenvat Credit Can't Pay Sugar Cess; Refund Possible for Exports Under Central Excise Act, 1944 A query was raised about whether Cenvat Credit (Basic Excise Duty) can be used to pay Sugar Cess and if a rebate can be claimed. Experts responded that it is not permissible since Sugar Cess is governed by the Sugar Cess Act, 1982, which is managed by a different department. A specific Board's Circular from 2014 was referenced to support this position. Further discussion clarified that while a refund or rebate for sugar cess paid on exports is possible, it is subject to the provisions of the Central Excise Act, 1944, as per a circular from 1993.