TaxTMI 
TaxTMI 
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.
Sugar Cess can be adjusted against Cenvat - BED
22 Feb 2016 
5 Replies 
2432 Views Asked by
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. (AI Summary)
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. (AI Summary)