Year End Review: Highlights of Achievements of the Department of Revenue - Denial of Balance CENVAT Credit?
The Department of Revenue has published the highlights of its achievements. On the Central Excise side, the Press Note mentions, in order to achieve the objective of minimum government and maximum governance to improve the ease of doing business, the following measures have been taken:
(i) Reduction in number of levies: Education Cess and Secondary & Higher Education Cess on excisable goods have been subsumed in Basic Excise duty. It is not mentioned that the CBEC has most unfairly, unjustly and illegally denied the utilization of the balance of CENVAT Credit of education cess available with the assessees. And leading to a mega litigation. The achievement on the Service Tax side claims, “Cenvat Credit Rules, 2004 have been amended so as to allow credit of Education Cess and Secondary and Higher Education Cess (subsumed under Service tax with effect from 1st June, 2015) paid on inputs/input services and capital goods to be utilized for payment of service tax in specified circumstances. ”
(ii) Electronic payment of duty: The facility of electronic payment of duty was extended to all the Central Excise assessees. But isn't this mandatory? The poor assessees were never told that this was a facility.
(iii) Time limit for taking CENVAT: Time limit for taking CENVAT Credit of duty/tax paid on inputs and input services was increased from six months to one year. But why restrict it to one year?
(iv) Payment of arrears in installments: Instructions have been issued to allow Chief Commissioners, Commissioners to allow payment of arrears in installments. Will the Government reject arrears paid in installments, if not permitted by the Commissioner?