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Education Cess / Secondary & Higher Education Cess

Central Excise - Started By: - Ashok Tank - Dated:- 29-8-2015 Last Replied Date:- 31-8-2016 - As per budgetary changes Education Cess and Secondary Higher Education Cess are exempt vide Noti. No. 14/2015 and 15/2015 w.e.f. 01/03/2015. However, there is no clarification with regards to balance of Education Cess and Secondary Higher Education Cess lying in Cenvat Account as on 28/02/2015. Please clarify whether balance of Education Cess and Secondary Higher Education Cess lying in Cenvat Account a .....

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closing balance available as on 28.2.2015. However, amendment has been made to allow the utilization of the Cess credits on input and input services received on or after 1.3.2015. Hence, legally it is not permissible to utilize the closing balance credit against Basic Cenvat duty liability.You may keep the same in the closing balance without utilization with a hope that the Government / CBEC would come with amendment / clarification in as much as the said credit was earned during the period whe .....

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d in Parliament that ​Education Cess and SHE Cess has been subsumed with Basic Rate of duty and as such, propose to levy 12.5% basic cenvat rate .​b) The above clearly shows the intention of the Government to merge both Cesses with Basic cenvat rate.​c) As such, when there is no payment of education cesses after 1.3.2015, the closing balance of amount lying under Education cess and SHE Cess also automatically subsumed with Basic duty closing balance.​d) That is why, the G .....

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ation cess / SHE cess and hence, as per Rule 6 of CC Rules, credit is not eligible for such cesses after 1.3.2015. In order to overcome the above situation and to give relief from Rule 6, the Government has come out with an amendment in cenvat credit rules to enable the assesses to take credit of such cess and utilize the same after 1.3.2015.f) Hence, for the above reason, the same principle is applicable to closing balance of cessess already earned as on 28.2.2015.In view of the above, you may .....

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ers of Taxmanagementindia.com to express their views.S. GokarnesanAdvocate, Chennai98400 87349mail: s.gokarnesan@gmail.com​ - Reply By vijay kumar - The Reply = In terms of amended Rule 3(7) of Cenvat Credit Rules, 2004 read with Notification No. 12/2015-CE (NT), dated 30.04.2015, only the amounts towards Education Cess & Secondary Higher Education Cess received after 01.03.2015 can be utilized for payment of excise duty. Prior to this date, such credit was not allowed to be utilized f .....

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ules. However, I have also given a solution to litigate the issue and then to get a decision from the higher appellate court. As Advocate and Tax Consultant, we have to advise not only the correct legal position to clients but also give solutions to overcome the situation. Hope you would appreciate the solution given by me and I expect your views on this. regards S. Gokarnesan Advocate - Reply By bhart b sharma - The Reply = it lapses - Reply By Ashok Tank - The Reply = Dear Mr. S. Gokarnesan / .....

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for permission to utilize the balance in other Central Excise duties. We should not forget that Cess is also a kind of duty. Representations to the department would expedite the clarification from the Board. - Reply By Ganeshan Kalyani - The Reply = Sir, I would request experts to share updated views on the subject. Thanks - Reply By KASTURI SETHI - The Reply = Sir, Notification No.22/15-CE (NT) dated 29.10.15 allows the utilisation of credit of Education Cess and Higher Education towards any t .....

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5 can be availed or not.In this situation i am eager to know how the industries are reacting on this change. There are so many assessees whose closing balance as on 01.03.2015 of 2% Education Cess and 1% S.H.Education Cess are considerable high amount. I am eager to know what steps would they taken or what strategy they are going to take. This may or may not fare to intend to know about other company stategy but as a layman my intention is correct I believe.Sir, if all the assesses are waiting u .....

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d in GST as opening balance. Hence an assurance is there, that even if no notification is received from Govt, even if no representation is made before Govt, even if no credit is taken suo-motto, even if no credit is taken with due intimation to Department, even if no permission is sought before taking credit, even if no action is taken by both assesses and Govt then also there is a hope that the balance of credit of 2%Education Cess Cross and 1% S.H.Education Cess would be allowed to carry forwa .....

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5/2015-CX.1 dated 7.12.15 which is appended below: - Reply By Ganeshan Kalyani - The Reply = Sir, I have gone through the same. Thanks for sharing the information. Sir, so many assessees would be carrying balance of Cess as on 01.03.2015 in their books. Will it be fare for them to forgo those credits citing the reference of the circluar reproduced in your view. Sir the provision states that if tax is paid then the credit should not be denied. Then how it will be fare to say in day that the credi .....

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