Is it compulsory to pay cess

[RAM SHARMA]

Dear Experts,

As per under rule 6(3)1 of Cenvat Credit Rule, 2004. Is it compulsory to pay cess on 5% duty. Pl advice.

(3)   Notwithstanding anything contained in sub-rules (1) and (2), the manufacturer of goods or the provider of output service, opting not to maintain separate accounts, shall follow either of the following options, as applicable to him, namely:-

(i)	the manufacturer of goods shall pay an amount equal to five per cent. of value of the exempted goods and the provider of output service shall pay an amount equal to six percent. of value of the exempted services;  I want your opinion on above subject rule. Thanks

AI Summary

Inquiry on Cess Payment Under Rule 6(3)1 of CENVAT Credit Rules: Not Mandatory for Education Cess. A user inquired whether it is compulsory to pay cess on a 5% duty under Rule 6(3)1 of the CENVAT Credit Rules, 2004. The rule states that manufacturers who do not maintain separate accounts must pay an amount equal to 5% of the value of exempted goods, while service providers pay 6% for exempted services. An expert responded that it is not mandatory to pay the Education and Secondary Education Cess under this rule, as it is not considered equivalent to Central Excise Duty.