UTILIZATION OF Edu.cess and H.Edu.cess

[Guest]

we have Edu. cess and H.Edu. cess credits in our RG 23 PART II.

Should we utilize these cess in payments of basic Ex.duty and if yes, what will be procedure to utilise.

Thanks

[Ganeshan Kalyani]

No you cannot take the credit.

[KASTURI SETHI]

Dear Sh.Sanjay Jain,

Pl. go through notifications appended below, (especially highlighted portion of both notifications). If you have still any doubt, your cross query is welcome.

Cenvat Credit Rules, 2004 - Second Amendment of 2015

[Notification No. 12/2015-C.E. (N.T.), dated 30-4-2015]

 

Cenvat Credit Rules, 2004 - Fifth amendment of 2015

[Notification No. 22/2015-C.E. (N.T.), dated 29-10-2015]

In Central Excise, the receipt of credit on Edu. Cesses prior to 1.3.15 can be utilised towards BED and in Service Tax receipt of credit on Edu. cesses prior to 1.6.15 can be utilised towards any output service. Credit on Ed. Cesses received after 1.3.15 (in Central Excise) and after 1.6.15 (in Service Tax) cannot be utilised. Thus I endorse the view of Sh.Ganeshan Kalyani, Sir. I have just elaborated with Notifications amending Cenvat Credit Rules,2004.

 

[Ganeshan Kalyani]

Sir I remember long back there was NCCD credit which after amendment was not allowed to take. The assesses were carry forwarding such credit in their books of accounts. Such is the case of Ed.cess and SH. Ed. Cess.

[KASTURI SETHI]

Yes, Sir. your memory is sharp and correct.

[Ganeshan Kalyani]

Sir thanks for your complement. Thanks.

[Guest]

A big thanks to shree Kasturi sethi ji and also to kalyani ji.

[Guest]

I can't understand that why gov.is not issuing any noti. on this issue? How many years we have to c.f. balance of edu. Cass and high edu. cess

[KASTURI SETHI]

Sh.Vyas Ji,

I think you have not fully read both notifications. One Notification is missing in my reply. I further clarify as under:-

In terms of Notification No.12/15-CE (NT) dated 30.4.15, Credit of HE and SHE Cess on the strength of invoices issued on and before 1.3.15 and received in the factory of the manufacturer of the final product on or after 1.3.15 can be utilised for payment of duty of Central Excise specified in the First Schedule to the Excise Tariff Act. In other words, for your understanding towards BED.

Similarly, In terms of Notification No.22/15-CE (NT) dated 29.10.15, Credit of HE and SHE Cess on the strength of invoices issued on and before 1.6.15 and received in the premises of the provider of output service on or after 1.6.15 could be utilised for payment of Service Tax on any output service.

The ACES system would accept the return. If any doubt, you may post cross question in this forum of TMI.

 

[Ganeshan Kalyani]

Sir nice reply. Hope the query is resolved Thanks

AI Summary

Education cess credit limited: pre-cutoff cess credits usable against excise or service tax; post-cutoff credits disallowed. Availability and utilisation of education cess and higher education cess credit are restricted by amendments to the Cenvat Credit Rules; cess credits supported by invoices issued on or before the prescribed cutoff and received in the relevant premises may be utilised against central excise duty or service tax, while credits received after the cutoff cannot be utilised and must be carried forward.