Cenvat on cvd and additional duty of import

This query is : Resolved

sonal (Querist)
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19 May 2011 We have imported a machinery from china. We are manufacturers as well as service providers.the bill includes basic custom duty, cvd and additional duty of imports@4%.

I am aware that No cenvat on BCD is available. With respect to .CVD and additional duty of imports I want to know whether it will be available as 50% in the first yr and balance in next years or entire 100% in the first year itself.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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19 May 2011 only additional duty claim is available & 100% available......refund can be claimed

sonal

sonal (Querist)
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19 May 2011 As far as I am awAre, cenvat on CVD as well as additional duty of imports is available. And on CVD 50% for the first yr and balance in next years and 100% of additional duty of import in the first yr itself.

Kindly confirm

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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23 May 2011 50% of the CVD and Addnl. duty is admissible as cenvat credit in the first year. Balance can be availed in the subsequent year. If the machinery is exclusively used in relation service, credit of Addnl. duty is inadmissible.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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23 May 2011 Dear Sonal,
You are right. 50% in the year of receipt as far as CVD is concebred and SAD - 100%.
For SSIs the 100% credit can be availed in the year of receipt.

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