central excise duty -cenvat credit

[ASHISH YADAV]

Dear sir,

For the excise duty credit, it was not necessary to take 2% 1% duty off. please send the date of close of education shess of credit excise.

[DR.MARIAPPAN GOVINDARAJAN]

01.06.2015 the rate of 12.36% is increased to 14%. Therefore education cess and higher education cess came to an end on 31.05.2015.

[Ganeshan Kalyani]

Refer Notification No. 14/2015 [CE] 1-3-2015 & Notification No. 14/2015 [CE] 1-3-2015.

[Ganeshan Kalyani]

Notification No. 15/2015 [CE] 1-3-2015

[KASTURI SETHI]

See Notification no. 12/15- CE NT and 22/15-CE NT.

[YAGAY andSUN]

CESS is immortal. as it also creeps in GST !

[Nash Industries I Pvt Ltd]

Manufacturers can utilise the cess for payment of excise duty wef 01.03.2015 while the service providers can utilise the cesses from 01.06.2015. Please note that the catch is for the goods or services received on or after 01.03.2015 and 01.06.2015 for manufacturers or service providers.

The question that arises is what happens to the balance of cess, if any that lies as opening balance. Am of the view that the same be utilised for the payment of duty or service tax as the case may be, though shall lead to litigation. However, the decisions says that the the benefit accrued at the time of levy cannot be taken away (promissory estoppel).

Cesses ceases in GST except on the luxury items (that too for a specific period for compensation).

Regards

S.Ramaswamy

[KASTURI SETHI]

Yes. Sir. I have already mentioned one judgement of Supreme Court against Issue ID No.111628. It pertains to lapse of accumulated credit because of exemption to dutiable goods during the budget. The analogy is applicable to the lapse of credit of cesses.I mean in favour of the party.

[Ganeshan Kalyani]

If the duty of cesses ceased then input cesses cannot be utilised. This because cross utilisation of cess against basic excise duty is not allowed.

AI Summary

Cess credit cessation: transitional utilisation allowed but opening balances and cross utilisation remain contested under tax rules. Education cess and higher education cess ceased upon the 2015 rate change; transitional notifications allowed manufacturers to utilise accumulated cess credits for excise duty from March and service providers from June, for inputs received on or after those dates. Opening balances of cess credit are administratively regarded as utilisable against duty or service tax though contested and potentially litigable; promissory estoppel and past Supreme Court analogies have been cited in support. Most cesses ended with GST except a targeted compensation cess. Cross utilisation of cess credit with basic excise duty is prohibited.