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TMI BlogCENVAT - Partial ReeliefX X X X Extracts X X X X X X X X Extracts X X X X ..... CENVAT - Partial Reelief X X X X Extracts X X X X X X X X Extracts X X X X ..... at remain unanswered in the Budget 2015. Now the government has come up with the notification to clarify some of these issues. A notification 12/2015 - Central excise (NT) dated 30/04/2015 was issued and following provisions have been incorporated after second proviso to rule 3(7)(b):- "Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct 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 specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the First Schedule to the Excise Tariff Act.". Analysis The amendment is providing a limited relief. The first proviso speaks for credit of EC and SHEC paid on inputs and capital goods received on or after 01.03.2015. The credit of EC and SHEC paid on inputs and capital goods received before 01.03.2015 is still not answered. In absence of any clarity on such credit of EC and SHEC paid on i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs and capital goods received before 01.03.2015 seemed to be lapsed. Another proviso is related to EC and SHEC paid on capital goods only. Further this proviso speaks for capital goods received during the financial year 2014-15 only. The question regarding unutilized credit on capital goods received before the financial year 2014-15 is still not answered. The last proviso is related to CENVAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit of EC and SHEC on input services received on or after 01.03.2015. Thus it can be said that the government has come up with the limited relief of enabling credit on EC and SHEC for the period on or after 01.03.2015. But for the Cenvat credit of EC and SHEC for the period before 01.03.2015, there is no relief to the assessees. This is just for your reference. It does not constitute our pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fessional advise or recommendation.
CA Akash Phophalia
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