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How to deal with Balances of 2% Primary Education Cess of Central Excise & 1% Secondary & Higher Education Cess of Central Excise, lying in CENVAT Credit Register on 01.03.2015 ?
How to deal with Balances 2% & 1% cess on 01.03.2015
02 May 2017 
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Education Cess credit: accumulated balances cannot be utilized after cess withdrawal; existing rules and notifications apply.
After exemption of Education Cess and Secondary & Higher Education Cess from levy w.e.f. 01.03.2015, Sub rule 7(b) of Rule 3 CENVAT Credit Rules, 2004 restricts credit use to the corresponding cesses. The tariff conference concluded the withdrawal was a policy decision and that accumulated credit of those cesses cannot be utilized for other excise or service tax liabilities; existing rules and notifications continue to govern. (AI Summary)
After exemption of Education Cess and Secondary & Higher Education Cess from levy w.e.f. 01.03.2015, Sub rule 7(b) of Rule 3 CENVAT Credit Rules, 2004 restricts credit use to the corresponding cesses. The tariff conference concluded the withdrawal was a policy decision and that accumulated credit of those cesses cannot be utilized for other excise or service tax liabilities; existing rules and notifications continue to govern. (AI Summary)