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.

[KASTURI SETHI]

Sh.Mehul Pandya Ji,

Answer is 'NO'. Sugar cess is levied under Sugar Cess Act, 1982 which is administered by different department. Go through the contents of Board's Circular No. 978/2/2014-CX, dated 7-1-2014carefully.

[CSSANJAY MALHOTRA]

Respected Sh. Kasturi ji,

Endorse your opinion completely.

[DR.MARIAPPAN GOVINDARAJAN]

I also endorse the view of Sethi Sir

[Mehul Pandya]

Sir,

Can I Claim Refund / Rebate of the sugar cess payment in case of export

[KASTURI SETHI]

Cess - Exemption of Cess on Sugar to be exported

Circular No. 10/93-CX.8, dated 1-9-1993

[From F.No.261/12/42/92-CX.8]

STILL IN FORCE.

As per Section 3(4) of Sugar Cess Act, 1982, for refund of cess the provisions of Central Excise Act, 1944 and Rules made there under, are applicable.

 

AI Summary

Sugar cess adjustment: Cenvat credit cannot be used; export consignments may seek refund under cess refund provisions. Cenvat credit cannot be applied to discharge Sugar Cess because the cess is levied under the Sugar Cess Act, 1982 and administered separately; administrative guidance is cited in the Board circular. For exported sugar, exemption and refund mechanisms apply: refund of the cess follows the refund provisions of the Central Excise legal framework as made applicable by the Sugar Cess Act.