Cenvat credit of EC & SHEC

[Guest]

Sir, as per 12/2015 Central Excise- NT,whether it mean that the EC & SHEC paid for the Inputs or Capital Goods received after 01/03/2015 to till date can be claimed as credit towards payment of Excise duty?

We have a Bearing bank in which bearings will be at our premises but the invoice will be raised at the time of requirement by us. The dealer charges EC & SHEC on excise Invoice even after 01/03/2015. cen we utilise that EC & SHEC towards payment of Excise Duty.

[Rajagopalan Ranganathan]

Madam,

As per third proviso to rule 3 (b) of Cenvat Credit Rules, 2004 "the credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the factory of manufacture of final product on or after the 1st day of March, 2015 can be utilized for payment of the duty of excise leviable under the First Schedule to the Excise Tariff Act:

[DR.MARIAPPAN GOVINDARAJAN]

Whether EC & SHEC can be utilized towards payment of service tax by the service provider?

[KASTURI SETHI]

Sir,. For this Notification no. Is 22/15- ST.

[KASTURI SETHI]

I think HE and SHE Cess must be paid on or before 1.3.15 on capital goods, inputs. For I input services the date is mentioned in Notification no.22/15- ST

[DR.MARIAPPAN GOVINDARAJAN]

Thank you Ranganathan Sir

AI Summary

Cenvat credit of education and higher education cess usable for excise duty after rule amendment clarifies eligibility. The third proviso to rule 3(b) of the Cenvat Credit Rules, 2004 permits utilization of credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the factory of manufacture of the final product on or after the relevant rule change date for payment of excise duty leviable under the First Schedule to the Excise Tariff Act.