Balance of Education Cess in PLA - Refundable?
DDT raised this question in 01 07 2016.
This question was raised in a meeting of the Regional Advisory Committee (RAC) of Hyderabad Central Excise Zone held on 30.06.2016. The question asked was:
Kindly advise whether Balance Education Cess and Secondary & Higher Education Cess lying in PLA account can be used for payment of Basic Excise duty. The procedure for doing this and if it cannot, then what can be done with this amount paid to the Government directly by the assessee but lying unutilized .
The Department replied that as per the existing provisions, the balance education cess and secondary & higher education cess lying in PLA Account cannot be utilized for payment of duty of excise. A Commissioner stated that the unutilized amount of education cess and secondary higher education cess can be sought as refund under Section 11B of Central Excise Act, 1944 and Chief Commissioner concurred with the said view and stated that refund can be granted .
But why can't they allow this amount to be used for payment of excise duty instead of applying for a refund, getting a SCN and then going through the grill of litigation? Can't the department just adjust this amount in their accounts - after all the money has gone into the Consolidated Fund of India? Is it ease of doing business?