Dear Sir, As you are aware that from 1st March 2015, Education Cess and Secondary & Higher education cess leviable on Excisable goods are fully exempted. Further to this, Notification no 12/2015 CE (NT) dated 30.04.2015 says that credit of Education Cess and Secondary & 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. Our question is how can we utilise the available credit of Education Cess and Secondary & Higher education cess paid on inputs which were received in the factory before 1st day of March, 2015?

The law is silent on the credit of Education Cess in balance as on 1.3.2015. The Not.No.12/2015 CE(NT) allows only credit on goods reveived after 1.3.2015 and this cannot be strictly applied to the present situation. However, it is logic that when credit is allowed for goods to be received, the credit can not be denied for goods already received. If huge amount is in balance it is better to show the balance in returns and wait for an amendmeent/claification for rule 3(7)(b) of Cenvar Credit rul