CENVAT BALANCE

[mk Jain]

Dear Sir,

If Assessee have CENVAT balance in Education Cess & SHEC as on date.

As per notification 12/2015 CE(NT)

"Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on input services received by the manufacturer of final product on or after the 1st day of March, 2015 can be utilized for payment of the duty of excise specified in the First Schedule to the Excise Tariff Act."

There are restriction of dates and not clarity for credit taken before 1st March.

Now in GST scenario can we transfer for use this balance if we are showing in return ?

MK

TMTL

 

AI Summary

Cenvat balance carryforward of education cesses into GST is disputed, subject to receipt date cutoffs and potential litigation.
Whether accumulated Cenvat balances of Education Cess and Secondary and Higher Education Cess can be utilised or carried forward into GST is contested. The dispute turns on amendments limiting utilisation to inputs, input services or capital goods received after a specified cut off date, with the administrative stance that balances existing as of the cut off will lapse. Practitioners diverge: some contend Rule 3 permits utilisation, while departmental clarifications and tariff conference notes restrict eligibility, producing litigation risk and prompting consideration of administrative representations or constitutional remedies.