Just a moment...

Report
FeedbackReport
Bars
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID : 4265
- 0 -

Cenvat balance of Basic exise duty to be utilized for payment of Edu Cess

Date 16 Jun 2012
Replies9 Answers
Views 10812 Views
Asked By

Dear Sir,

Pl let us know whether Cenvat balance of Basic Excise Duty can be utilized for payment of Education Cess and Higher Secondary Education Cess.

9 answers
Sort by

Old Query - New Comments are closed.

Hide
- 0
Replied on Jun 16, 2012
1.

Dear Sir,

Basic duty of excise can't be utilized against the payment of Ed Cess and SHE Cess.  Kindly refer CC& C Ex., J & K versus Bharat Box Factory Ltd. (Unit no.1), final order Nos. 115-130/2011 -Ex(PB), dated 19-01-2011 in Appeal Nos E/3075-3090/2009.

Please also refer sub Rule 7(b) of Rule 3 of the Cenvat Credit Rule,  2004 as amended time to time.

Best Regards,

Pradeep Khatri

- 0
Replied on Jun 16, 2012
2.

I DO NOT KNOW ABOUT THE CASE LAW BUT RULES RESTRICT UTILISATION OF CREDIT OF CESS FOR CESS ONLY NOT OF BASIC FOR CESS

- 0
Replied on Jun 16, 2012
3.

In terms of Rule 3 (4)(a), credit of duty of excise may be utilized for payment of ‘any duty of excise' on any final product and as mentioned above ‘duties of excise' includes both ECess and SHE Cess as well. there is no such specific restriction on utilization of credit of duty of excise (or basic excise duty) which is governed by Rule 3 (4)(a).

Following case laws are support of this views.

Commissioner of Central Excise, VAPI v BALAJI INDUSTRIES - CESTAT- AHM,
CCE , Shillong Vs Godrej Consumer Products Ltd - CESTAT- Kol ,
Sun Pharmaceutical Industries Vs CCE , CESTAT-Del,
CCE Vapi Vs.  M/s. Madura Industries Textiles- CESTAT - AHM

which support the above view.

- 0
Replied on Jun 16, 2012
4.

Dear Vijay Sir,

The case law mentioned by you (speacially Sun Pharma Case) in support of your point of view has been overruled in Bharat Box Factory judgment. Please go through it.

Best Regards,

Pradeep Khatri

- 0
Replied on Jun 18, 2012
5.

Dear Pradeepji,

I appreciate your concern, in Bharat Box Factory judgment, the rule 3(4)(a) of Cenvat Credit Rule, 2004  are not addressed, in the said judgement all the rules & other case laws are not properly argued, rule 3(7) of Cenvat Credit Rule, 2004 applies restriction to the credit of various duties, such as additional duties on textiles and textile articles, NCCD, Education Cess etc. There is nothing in this rule which restrict the use of CENVAT credit of basic excise duty for payment of Education cess and S. & H. education cess. When there is no restriction prescribed under rule 3(7) of Cenvat Rules about such utilization of credit of basic duty there is no reason to deny it. Therefore, in absence of any restriction and as provided under rule 3(4) of Cenvat Credit Rule, 2004 the CENVAT credit of basic duty may be utilized for payment of any duty of excise on any final product.

Thanks

- 0
Replied on Jun 18, 2012
6.

Dear Vijay Sir,

Thanks for your valuable insights and analysis on the aforesaid matter.

Best Regards,

Pradeep Khatri

- 0
Replied on Jun 18, 2012
7.

I fully agree with the post of Mr. Vijay. There is no restiriction in rule 3(7) of CCR, 2004,.

- 0
Replied on Jun 18, 2012
8.

An interesting situation. Pradeepji has correctly given the present legal position which has emerged by way of two member judgment of CESTAT which has brazenly overruled the earlier single member rulings on the subject. The judgment strangely has avoided any discussion on Rule 3(4) in a threadbare manner as has been rightly pointed out by Vijayji. Also there is a clever mention that this is in relation to claiming benefit under Notn.56/02.

The fact that Education Cess is a duty of excise has been clearly stated in Finance Act 2004. This has been further confirmed by a larger bench judgment of CESTAT. As long as these facts prevail, I do not think utilisation of BED credit for payment of ECess can be disallowed in normal situations.

- 0
Replied on Jun 19, 2012
9.

Dear Sirs,

Credit of BED and service tax can be utilized for payment of education cess and SAH cess but not vice versa.

Old Query - New Comments are closed.

Hide
Recent Issues