CUSTOMES EDUCATION CESS

[BHARAT PRADHAN]

DEAR SIR, AFTER CUSTOMES NOTIFICATION, DATED 17-03-2012, CAN I CREDIT TAKEN CUSTOMES EDUCATION CESS & SPECIAL ADDITIONAL DUTY OF CUSTOMES (SPL.CVD)., IMPORT TARIFF CODE IS : 76012010, PLEASE ADICE

[sv bhasker]

Sir,

You can not take cenvat credit of Customs education cess and SHE cess from 17.3.2012 onwards as no education cess and SHE cess are paid on CVD portion of the customs duty due to exemption. However, you can take credit of Spl CVD at 4% if you are a manufacturer. If you are a service provider you can not take credit of spl CVD also. 

[YAGAY and SUN]

No you cannot avail the CENVAT credit as rightly stated in the above reply.

AI Summary

Cenvat credit entitlement: education and SHE cess not creditable, special CVD credit limited to manufacturers.
After the Customs notification dated 17-03-2012, Cenvat credit for Customs education cess and SHE cess is not available because those cesses are not paid on the CVD portion due to exemption; however, credit of the special CVD is available to manufacturers while service providers cannot take that special CVD credit.