Cess on sugar

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Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2013 My query was related to sugar cess.
It is payable on sale of free sugar, at 24/- ,it is called as cess on sugar, we pay it under excise rules. So it is as good as excise duty, Then my question is we have to pay it with cash only, or can we adjust it by paying through ccr of excise?

Hemant Kumar

Hemant Kumar (Expert)
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14 March 2013 You can adjust it through Cenvat Credit Ac.

Hemant Kumar

Hemant Kumar (Expert)
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14 March 2013 You can adjust it through Cenvat Credit Ac.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2013 Cess on sugar is paid to State govt and excise duty is collected by central govt. Then how ccr can be availed?

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2013 Cess on sugar is paid to State govt and excise duty is collected by central govt. Then how ccr can be availed?

Ashish Vaish

Ashish Vaish (Expert)
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23 March 2013 Absolutely not, Sugar Cess can not be paid via Cenvat of ED. Sugar Cess is levied under Sugar Cess Act 1982. It is collected along with ED but it is not at all ED. It is just like paper cess collected for the development of the industry.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2013 Sir,
Sugar Cess Act, Section 3 defines it as Excise Duty.
) There shall be levied and collected as a cess, for the purposes of the Sugar Development Fund Act, 1982, a duty of excise on all sugar produced any sugar factory in India, at such rate not exceeding 1[fifteen rupees] per quintal of sugar, as the Central Government may, by notification in the Official Gazette, specify from time to time:

Provided that until such rate is specified by the Central Government, the duty of excise shall be levied and collected at the rate of 2[fourteen rupees] per quintal of sugar.

Please clarify