Cenvat

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Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2013 We are impoter & trader We will pay basic custom duty +CVD+Cess+ Additional Duty.When we pass on the mod vat we pass CVD+Additional CVD.I need your help on when we pass modavat shall we pass education cess also which paid on CVD . Kindly Advice
Pls help me any circular for the same.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 November 2013 No credit of Education Cess and SAHE cess on imports after 17-3-2012 as that cess is only of customs duty and not of CVD.

¨ Education cess and SAHE cess paid on excise duty and service tax (not on imported goods)

Utilisation of Cenvat Credit

¨ All taxes and duties specified in rule 3(1) of Cenvat Credit Rules form a ‘pool’. This credit can be utilised by manufacturer of excisable goods or provider of taxable service, for payment of any tax or duty as specified in rule 3(4) of Cenvat Credit Rules.

¨ One to one relation is not required (However, you cannot ignore rule 6 of Cenvat Credit Rules).

¨ Cenvat credit of basic excise duty and service tax can be utilised for payment of education cess and SAHE cess but vice versa is not permissible.

¨ An assessee who is manufacturer and also service provider can utilise credit of excise duty for payment of service tax and vice versa.

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2013 this means we not able to pass both education cess to our customers.
But we paid duty bot cess chargeed on Basic cutom duty + CVD.

Pushkar Singh Mer

Pushkar Singh Mer (Expert)
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16 November 2013 Before 17.03.2012 we used to pay education cess on CVD and Education Cess on Custom Duty. But after 17.03.2012, only Education Cess on Custom Duty is payable. So you cannot pass on Education Cess because you didn't paid Education Cess on CVD.

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