Amendment in the cenvat credit rules, 2004 as per notification no.12/2015

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CA Gaurav Gupta

Business and Management Consultancy

69 Points Joined July 2010

Rule 3(7)(b) of the CCR, 2004 has been amended so as to allow utilisation of credit of Education Cess and Secondary & Higher Education Cess for payment of basic excise duty in the following situations:

a. Education Cess and Secondary & Higher Education Cess on inputs or capital goods received in the factory of manufacture of final product on or after the 1st day of March, 2015;

b. Balance 50% Education Cess and Secondary & Higher Education Cess on capital goods received in the factory of manufacture of final product in the financial year 2014-15; and

c. Education Cess and Secondary & Higher Education Cess on input services received by the manufacturer of final product on or after the 1st day of March, 2015.

Notification No.12/2015-Central Excise (N.T.), dated 30.04.2015 refers.

Attached File : 409834 20150504122352 do letter 12 2015.pdf downloaded: 172 times

Replies (2)

Niraj Kumar Sinha

Sr. Officer SPSIL

648 Points Joined August 2012

Dear Sir,

Many Many thanks. We would be highly obliged if you write about balance (Ed Cess and Sh Ed Cess) lying in CENVAT Credit on or before 28.02.2015.

CA Gaurav Gupta

Business and Management Consultancy

69 Points Joined July 2010

Dear Mr. Niraj,

As per my understanding on the said notification, the treatment balance of Education cess and SHEC lying in cenvat credit on or before 28.02.2015 will be the same as it was before except in the case of Capital Goods. In case of capital goods, If Balance 50% Edu Cess and SHEC Cess on capital goods received in the factory of manufacture of final product, utilisation of credit of edu.cess and SHEC agsinst payment of Basic Excise duty is allowed.