. Edu Cess and SHE Cess Can be used for payment of Service Tax after 01-06-2015

Edu Cess and SHE Cess Can be used for payment of Service Tax after 01-06-2015 : CBEC issued Notification No.22/2015-Central Excise (N.T.) dated 29-10-2015 to further amend Cenvat Credit Rules, 2004, so as to allow credit of Education Cess and Secondary and Higher Education Cess paid on inputs/input services and capital goods, to be utilized for payment of service tax in specified circumstances.

It is provided in the notification that Cenvat Credit of Edu. Cess and SHE Cess related to input and capital goods which is received on or after 01-06-2015 in the premises of output service provider can be used for payment of Service Tax on or after 01-06-2015. Similiarly the 50% cess related to capital goods for FY 2014-15 can also be used for payment of service tax on or after 01-06-2015.

Further it is also provided in the said notification that the credit of Education Cess and Secondary and Higher Education Cess paid on input service in respect of which the invoice, bill, challan or Service Tax Certificate for Transportation of Goods by Rail (referred to in rule 9), as the case may be, is received by the provider of output service on or after the 1st day of June, 2015 can be utilized for payment of service tax on any output service.

 

It may be noted that earlier as per NOTIFICATION NO. 12/2015-Central Excise (N.T.), Dated: April 30, 2015 the CENVAT Credit Rules, 2004 were amended to allow credit of Edu. Cess and SHE 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. The relevant part of notification is as under:

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

 

Complete Notification No.22/2015-Central Excise (N.T.) dated 29-10-2015 is as under:

 

[TO  BE  PUBLISHED  IN  THE  GAZETTE  OF  INDIA,  EXTRAORDINARY,  PART II, SECTION 3,

SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Revenue)

Notification No.22/2015-Central Excise (N.T.)

New Delhi, the 29th October, 2015

G.S.R.     (E).- In exercise of the powers conferred by section 37 of the Central Excise Act,  1944  (1  of  1944)  and  section  94  of  the  Finance  Act,  1994  (32  of  1994),  the  Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:–

 

  1.         (1)        These rules may be called the CENVAT Credit (Fifth Amendment) Rules, 2015.

   (2)        They shall come into force on the date of their publication in the Official Gazette.

 

  1.         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 fifth proviso, the following proviso shall be inserted, namely:-

“Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the premises of the provider of output service on or after the 1st day of June, 2015 can be utilized for payment of service tax on any output service:

             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 premises of the provider of output service in the financial year 2014-15 can be utilized for payment of service tax on any output service:

Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on input service in respect of which the invoice, bill, challan or Service Tax Certificate for Transportation of Goods by Rail (referred to in rule 9), as the case may be, is received by the provider of output service on or after the 1st day of June, 2015 can be utilized for payment of service tax on any output service.”

[F. No. 334/5/2015-TRU]

(Anurag Sehgal)

Under Secretary to the Government of India

Note.- The  principal  rules  were  published  in  the  Gazette  of  India,  Extraordinary,  Part II, Section 3, Sub-section (i), vide notification No.23/2004-Central Excise (N.T.), dated the 10th September,  2004 vide number  G.S.R.  600(E),  dated  the  10th September,  2004  and  last amended vide notification  No.21/2015-Central  Excise  (N.T.),  dated  7th October, 2015 published  in  the  Gazette  of  India,  Extraordinary,  Part  II,  Section  3,  Sub-section  (i),  by number G.S.R. 764(E), dated the 7th October, 2015.

Edu Cess and SHE Cess Can be used for payment of Service Tax after 01-06-2015