Finally, the fate of unutilised Education Cess and Secondary and Higher Education Cess lying in balance has been decided .
I had taken categorically in my article published in E.L.T on page A 211 in Part 4 of Vol.318 (April 2015 ) that I strongly feel that a specific provision shall be made for its utilization towards the payment of basic excise duty.
The Finance Ministry has finally allowed the same by way of introduction of third proviso under Clause (b) of sub-rule(7) of Rule 3 of Cenvat Credit Rules,2004 vide Notification No. 12/2015-C.E (N.T) dated 30.04.2015 effective from 30.04.2015 .
1.These rules may be called the CENVAT Credit (Second Amendment) Rules,2015.
(2) They shall come into force from the date of their publication in the Official Gazette.
2. In the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), in rule
3, in sub-rule (7), in clause (b), after the second proviso, the following shall be substituted,
namely:-
“Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the factory of manufacture of final product on or after the 1st day of March, 2015 can be utilized for payment of the duty of excise leviable under the First Schedule to the Excise Tariff Act:
Provided also that the credit of balance fifty per cent. Education Cess and Secondary and Higher Education Cess paid on capital goods received in the factory of manufacture of final product in the financial year 2014-15 can be utilized for payment of the duty of excise specified in the First Schedule to the Excise Tariff Act:
Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on input services received by the manufacturer of final product on or after the 1st day of March, 2015 can be utilized for payment of the duty of excise specified in the First Schedule to the Excise Tariff Act.”.
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