Swachbharatcess-sbc avail credit as per notification or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 As Various Discussions Seen, I.e Finance Act 2015, & (one of the Case Laws in 2015 For Sugar Mill cess) there is no specific reason is given not to take the Cenvat Credit. But as the FAQ and Various Other Discussions be in Caution not to take Cenvat Credit Because its not integrated in Cenvat Credit Chain. as CBEC also not given Clarfification for this. But Now in feb 2016 Notification No. 02/2016-Central Excise (N.T.) - W.e.f of 3 Feb 2016 Only SBC Can't Avail,

But What About before that, Because Finance Act 2015, clarifies Can Avail But FAQ is Showing Can't Avail.(Little Confusion). So as per going Finance Act 2015 We have Availed the Input SBC. and Adjusted according to Output SBC.

And by the CBEC Notification, from W.e.f 3 Feb 2016 We have Not taken any Input SBC whether Correct or not.

Kindly Give Reveiws.....

Tha nks in advance.....

Rupesh Jain

Rupesh Jain (Expert)
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18 May 2016 you cannot take the input of SBC.

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 FROM Notfication to 15-11-2015 to New Notification 3-2-16 SBC Can Avail

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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18 May 2016 SB Cess was introduced by Finance Act 2015 and was notified as applicable from 15th November 2015. In the notes to clauses in the Finance Bill it was clarified that this cess is payable in cash only i.e. no input credit can be availed. As per the provisions of CENVAT Credit Rules 2004 (as amended from time to time), while Service Tax input can be utilized to pay off either service tax or cess, the input of cess cannot be utilized for any other purpose than paying of the cess liability. Since SB Cess was payable only in cash, even if not specifically prohibited, the CENVAT Credit availed would have to be carried forward and could not be utilized for payment of duty. On 3rd February 2016, i.e. within three months of introduction, it was clarified that no credit of SB Cess could be availed. The clarification was also issued sufficiently early before the due date for filing ST - 3 April 25th, 2016.

It was clear from day one that SB Cess had to be paid in cash. Therefore there is no question of availing Input Credit on SB Cess either before or after 3rd February 2016.