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

[Asked by Guest]

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 for Basic Excise Duty may be used to pay education cesses under Rule 3(4)(a).
Rule 3(4)(a) permits utilization of CENVAT credit of Basic Excise Duty for payment of any duty of excise on final products, which includes Education Cess and Secondary and Higher Education Cess; no restriction in Rule 3(7) bars such use. Therefore BED credit may be used to pay education cesses, but cess credits cannot be used to pay basic excise duty, and taxpayers may debit the BED account to make such cess payments when cess account balances are absent.