UTILIZATION OF ED CESS AND SHE CESS

[Monaji gupta]

Dear Sir,

kindly guide us whether balance of ed cess and she cess which was in cenvat account as on 01.06.2017 could be utilized for payment of excise duty as i did in june,17.As per department call, they have sugestted that i have commited mistake in making utilization for payment of excise duty for the month June,17.kindly guide there can be any issue?

AI Summary

Education cess credit: post cut off credits may be used for excise duty, but pre existing balances face legal and administrative limits.
Balances of Education Cess and SHE Cess in CENVAT accounts were generally not permitted to be used to pay excise duty; however, 2015 notifications allowed credit of such cesses paid on inputs and input services received after specified cut off dates to be transferred and utilised for duty. Uncertainty persists as to whether cess balances existing in books on the cut off dates qualify for transfer, administrative rejections have occurred, migration to GST did not carry forward unutilised cesses, and a court declined claims for unutilised cess credit.