Is it compulsory to pay cess, Central Excise

[RAM SHARMA]

Dear Experts,

As per under rule 6(3)1 of Cenvat Credit Rule, 2004. Is it compulsory to pay cess on 5% duty. Pl advice.

(3)   Notwithstanding anything contained in sub-rules (1) and (2), the manufacturer of goods or the provider of output service, opting not to maintain separate accounts, shall follow either of the following options, as applicable to him, namely:-

(i)	the manufacturer of goods shall pay an amount equal to five per cent. of value of the exempted goods and the provider of output service shall pay an amount equal to six percent. of value of the exempted services;  I want your opinion on above subject rule. Thanks

Posts / Replies

[Pradeep Khatri]

No, it is not mandatory to pay the Cess (Education and Secondary Education Cess) under Rule 6 of the CENVAT credit Rules, 2004 as amended from time to time, since Rule 6 says payment of an amount which cannot be treated at par with the Central Excise Duty.