Whether education cess is cenvatable

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Vishal

Direct & Indirect Taxation

21 Points Posted on 27 June 2014

Hello Everyone,

I have a doubt regarding the cenvatable of Education cess paid on imported goods. The following is the case from which you will able to understand my question:

Our company is importing Raw Gold on which Basic Custom Duty is Nil & CDV is 8%.

Example: Import value of Rs.1,00,000/-

The Basic Custom Duty is NIL

The CVD will be 8000/-

The SAD is Nil

Hence the total Custom Duty is 8,000/-

The Education Cess & SHE on total custom duty is 240/-

As per Notification No 13/2012 - Custom & 14/2012-Customs whereby exempting the Edu & SHE on CVD.

The Edu & SHE charged is on total Custom Duty & not on CVD, now since in our case the total custom cuty comprieses of only CVD so whether are we eligilbe for Edu & SHE.

Replies (2)

Harendra Kumar

Tax Advisor

1502 Points Posted on 27 June 2014

Because such duty is custom duty and their part of ed. Cess and SHE cess so that you cannot utilized the same.

Further Custom duty not applicable on Gold and also not applicable ed. Cess & SHE Cess on CVD than how can you utilize the same.

Rakshit

practising

426 Points Posted on 03 July 2014

Under rule 3(1) of the Cenvat Credit Rules, 2004,cenvat credit can be taken only of Cess paid under Finanace Act,2004 and Finance Act, 2007 with reference to excise duty. Hence any cess paid which is not with reference to excise duty is not cenvatable.

Raksh*t

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