Shortage Of Ed Cess & Hed 1%

[Avinash Bhavsar]

Dear Sir,

We do'nt have the sufficient fund in Ed Cess 2% and Hed 1% can we debit this amount form CENVAT credit or deposits the mat in the bank.

Regads,

Avinash Bhavsar

[JAMES PG]

The sub-rule (4) of Rule 3 of the Cenvat Credit Rules, 2004 provides that Cenvat Credit can be utilized for payment of any duty of excise on any final product. Education Cess & S&H Education Cess are duties of excise

[YAGAY and SUN]

Yes, you may utilise the credit of basic excise duty for the payment of Cess under Rule 3(4)(a) of the CENVAT credit Rules, 2004, as amended time to time.

AI Summary

Cenvat credit utilization permits payment of education cess and SHE cess under Rule 3(4)(a) of Cenvat Rules.
The provision permits utilization of Cenvat credit for payment of any duty of excise on final products, and Education Cess and Secondary and Higher Education Cess are duties of excise; therefore credit of basic excise duty may be applied to discharge the Cess liability under the Cenvat Credit Rules.