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Key features being:-
Taking a step towards GST, in Union Budget 2015, Honorable Finance Minister has proposed to abolish Education Cess and Secondary and Higher Education Cess (collectively referred as ‘cess’); in case of Excise Duty w.e.f. 1st March, 2015 and in case of Service Tax w.e.f. a date to be notified after the enactment of Finance Bill, 2015.
This amendment has raised questions regarding fate of cess, majorly, in following cases:
To remove difficulties, Central Government has issued Notification No. 12/2015-CE (NT) dated 30th April, 2015 to provide provisions for utilization of CENVAT Credit of cess for the purpose of payment of Excise Duty in following cases:
Therefore, though Central Government has allowed to utilize CENVAT Credit of cess in three cases mentioned in Para supra; fate of cess in respect of point no. a, b, c, and e is still full of doubts.
Here, it is pertinent to mention that similar doubts will also arise for Service Providers at the time of applicability of new Service Tax rate. Hope to see similar amendment in CENVAT Credit Rules, 2004 parallel with introduction of new rate of Service Tax to remove scope of difficulty as faced by manufacturers.
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