Will TRU wake up? - Credit of Education Cess
WHILE heaping praise on one section of the Board, DDT is compelled to remind another Section, TRU about their faux pas in the recent amendments to CENVAT Credit Rules. By Notification No. 12/2015 - CENT dated 30.04.2015, the Government has amended the CENVAT Credit Rules, 2004 to stipulate that:
1. 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.
2. 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.
3. 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.
DDT had immediately commented:
What about the balance of CENVAT credit of education cess lying in CENVAT account as on 28.02.2015? The amendment to CENVAT Credit Rules allows credit on inputs/input services received on or after 01.03.2015, but it does not provide solution to the balance of credit as on 28.02.2015.
What if someone had already received the inputs/input services before 28.02.2015, but did not take credit of education cess? Should he lose that?
In case of capital goods, it is not mandatory that the balance 50% should be taken only in the immediate next financial year. Then, why they allowed the credit only to the capital goods received in 2014-15, but not before that?
Why can't they make a simple amendment without creating any fresh problems?
We are still waiting for the clarification/amendment from the Board (read TRU)