Central Excise Payment of duty to be adjust addtional duty can set off Educational Cess and SHEC

[MUNIRAJ SRINIVASAN]

addtional duty can set off Educational Cess and SHEC

[R MUTHURAJ]

Dear Mr.Srinivasan,

Additional duty can be set off only with ED payable but Can not be set off against the Edu.Cess or SHEC as per Sec 3(7)(b) of Cenvat Credit Rule, 2004

AI Summary

Additional duty set-off cannot be applied against educational cess or SHEC in central excise practice under Cenvat Credit rules. The operative position is that additional duty is eligible for set-off only against additional excise duty liability and cannot be adjusted against the Educational Cess or the Secondary and Higher Education Cess, pursuant to the governing Cenvat Credit rules.