Payment of ED Cess and SH Cess from BED Cenvat a/c

[SRINIVAS MADALA]

Dear sir, Can CENVAT Credit of Basic Excise Duty be used for payment of Education Cess / Secondary and Higher Education Cess? please let us know the provisions of rules if it is allowed srinivas

AI Summary

CENVAT Credit of Basic Excise Duty Can Be Used for Education and SHE Cess Payments Under Rule 3(4)(a) A query was raised regarding whether CENVAT Credit of Basic Excise Duty can be used for the payment of Education Cess and Secondary and Higher Education Cess. Respondents clarified that according to Rule 3(4)(a) of the CENVAT Credit Rules, 2004, the credit of basic excise duty may be utilized for payment of any duty of excise, including education cess and SHE cess. There are no restrictions under Rule 3(7) against such utilization. It was confirmed that this credit can be used for cess payments, but not vice versa. Further guidance was provided on transferring balances for payment.