Cenvat credit of AddCustoms duty@4% from supplies of EOU

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Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2009 Our supplier(100%EOU from Goa) indicates amount of Cenvat Credit to be taken from their invoices. This includes 4% additional customs duty piad by them at time of imports.
Excise department is asking reversal of this credit, under the pretext that this reversal is only available 07/09/2009.

ANIL JANGID

ANIL JANGID (Expert)
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02 November 2009 yes,Excise Department Stand is correct,please see the notification.

Government of India
Ministry of Finance
(Department of Revenue)

Notification No.22/2009-Central Excise (N.T.)

New Delhi, the 7th September, 2009

G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

(1) These rules may be called the CENVAT Credit (Second Amendment) Rules, 2009.

(2) They shall come into force on the date of their publication in the Official Gazette.

In the CENVAT Credit Rules, 2004, in rule 3, in sub-rule (7), in clause (a), after the proviso, the following proviso shall be inserted, namely:-

â€œProvided further that the CENVAT credit in respect of inputs and capital goods cleared on or after the 7th September, 2009 from an export-oriented undertaking or by a unit in Electronic Hardware Technology Park or in a Software Technology Park, as the case may be, on which such undertaking or unit has paid â€“
excise duty leviable under section 3 of the Excise Act read with serial number 2 of the notification no. 23/2003-Central Excise, dated 31st March, 2003 [G.S.R. 266(E), dated the 31st March, 2003]; and

the Education Cess leviable under section 91 read with section 93 of the Finance (No. 2) Act, 2004 and the Secondary and Higher Education Cess leviable under section 136 read with section 138 of the Finance Act, 2007, on the excise duty referred to in (A),
shall be the aggregate of â€“

that portion of excise duty referred to in (A), as is equivalent to -
the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, which is equal to the duty of excise under clause (a) of sub-section (1) of section 3 of the Excise Act;

the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act; and

the Education Cess and the Secondary and Higher Education Cess referred to in (B)â€.
[F.No.354/158/2008-TRU]
(Prashant Kumar)
Under Secretary to the Government of India

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No.23/2004-Central Excise(N.T.), dated the 10th September, 2004 [G.S.R.600(E), the 10th September, 2004] and were last amended by notification No.16/2009-Central Excise(N.T.), dated the 7th July, 2009, that was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) [G.S.R.481(E)].

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