Please advice

[SUSHIL SOMAWANSHI]

Dear Sir,

We debited excise duty form Cenvat ,EDN Cess & SHE Cess. But now we don’t have enough balance in EDN cess & SHE cess. So please advice me can I utilise Cenvat basic excise duty, Edn Cess & She Cess

Thanks & Regards,

Sushil

[NEERAJ KUMAR, RANCHI]

Kindly make your query more clear.

 

[YAGAY andSUN]

 No you can adjusti it from the basic excise duty.  You would have to deposit it through GAR-7 Challan (in cash).

[sanjay misra]

You can go through the following Judgement

C.C. & C. EX., J & K Versus BHARAT BOX FACTORY LTD. (UNIT NO. 1) - (CESTAT, NEW DELHI)

Classification - Cenvat credit - Refund - Notification No. 56/2002-CE., dated 14-11-2002 -payment of E.Cess using Cenvat crdit of basis duty - Held that: the provision of law either as it stood in the year 2005 or even today does not permit the payment of cess by utilising cenvat credit availed on payment of excise duty as the provision of law comprised under sub-rule 7(b) of Rule 3 specifically makes the provision regarding the utilisation of the cenvat credit. It specifically provides that the credit of the education cess on excisable goods and education cess on taxable services can be utilised, either for payment of the education cess on excisable goods or for payment of education cess on taxable services. - the modus operandi adopted by the respondents was not correct in relation to the utilisation of the cenvat credit while availing the benefit of Notification No. 56/2002, dated 14-11-2002. - Claim of refund rejected - decided in favour of revenue.

AI Summary

Cenvat credit limitation: cannot be used to pay education or higher education cess; cess must be paid by cash deposit. Cenvat credit of basic excise duty cannot be utilised to pay education cess or higher education cess; where cess-specific cenvat balances are insufficient the required cess must be deposited in cash via the prescribed GAR challan procedure. A tribunal ruling affirmed that cenvat utilisation is restricted to matching cess credits to cess liabilities and disallowed use of basic-duty credit for cess, rejecting refund claims based on such utilisation.