Whether Cenvat credit of E.Cess & SHE (Bill of Entry) is allowed

[Achyut Kale]

Dear Freinds,

By latest union Budget 2012-13, the patter for calculation of E.Cess and SHE on Bill of entry has been changed. Now, the both E.Cess and SHE are being calculated on BCD + CVD and the term is bening used like Custom Edu. Cess and Custom SHE Cess.

Whether Cenvat credit (proportionate on CVD) of E.Cess and SHE is allowed or otherwise? Pl guide.

AI Summary

Cenvat Credit Not Allowed for Education Cess and SHE on CVD Post 2012-13 Budget Changes A discussion on a forum raised the issue of whether Cenvat credit for Education Cess (E.Cess) and Secondary and Higher Education Cess (SHE) on the Bill of Entry is permissible, following changes in the calculation method introduced in the 2012-13 Union Budget. The new calculation method includes these cesses on Basic Customs Duty (BCD) and Countervailing Duty (CVD). A response clarified that Cenvat credit, proportionate on CVD for E.Cess and SHE, is not allowed.