TaxTMI 
TaxTMI 
Is it permissable to debit edu cess from CENVAT credit of BED ?
Education cess from BED
19 Nov 2008 
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Cenvat credit utilisation: basic cenvat duty credit may be applied to education cess absent a specific restriction.
Whether Cenvat credit attributable to Basic Excise Duty may be applied against Education Cess is contested; one view limits Cenvat credit for Education Cess to Education Cess alone, while an alternative interpretation of the Cenvat Credit Rules holds that the restriction on cross utilisation applies only to certain expressly listed duties and cesses, and therefore Basic Cenvat Duty credit may be used to meet Education Cess where no specific prohibition exists. (AI Summary)
Whether Cenvat credit attributable to Basic Excise Duty may be applied against Education Cess is contested; one view limits Cenvat credit for Education Cess to Education Cess alone, while an alternative interpretation of the Cenvat Credit Rules holds that the restriction on cross utilisation applies only to certain expressly listed duties and cesses, and therefore Basic Cenvat Duty credit may be used to meet Education Cess where no specific prohibition exists. (AI Summary)