TaxTMI 
TaxTMI 
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.
Cenvat balance of Basic exise duty to be utilized for payment of Edu Cess
16 Jun 2012 
9 Replies 
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Cenvat credit utilization: Basic Excise Duty credit may be applied to Education Cess payment, though contested.
The document records a contested question whether Cenvat credit of Basic Excise Duty may be applied to payment of Education Cess and Secondary & Higher Education Cess. One position invokes the Cenvat credit rule permitting utilization of duty credit for payment of any duty of excise and cites tribunal precedents supporting use of BED credit for cesses. An opposing position relies on a tribunal decision (Bharat Box Factory) and rule based restrictions to contend BED credit should not discharge cess liabilities, producing a divided practice. (AI Summary)
The document records a contested question whether Cenvat credit of Basic Excise Duty may be applied to payment of Education Cess and Secondary & Higher Education Cess. One position invokes the Cenvat credit rule permitting utilization of duty credit for payment of any duty of excise and cites tribunal precedents supporting use of BED credit for cesses. An opposing position relies on a tribunal decision (Bharat Box Factory) and rule based restrictions to contend BED credit should not discharge cess liabilities, producing a divided practice. (AI Summary)