Cenvat on Imported Capital Goods

This query is : Resolved

Girish (Querist)
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30 January 2010 Can anyone tell me which components of customs duty we cant avail Cenvat I mean can I avail cenvat credit on 4% Additional duty if yes under what notification pls advise

Thank you

Kamlesh Chokhani

Kamlesh Chokhani (Expert)
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30 January 2010 Dear Girish

Cenvat credit can be vailed on CVD paid on import of goods in lieu of excise duty.

Relevant rules-Cenvat credit rules 2004 ( Para-3(VII)

Relevant part is reproduced below

3. CENVAT credit. -

(1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of -

(i) the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act;

(ii) the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise Act;

(iii) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 ( 40 of 1978);

(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 ( 58 of 1957);

(v) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001);

(vi) the Education Cess on excisable goods leviable under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004);

(vii) the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified under clauses (i), (ii), (iii), (iv), (v) and (vi);

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

Thanks

Kamlesh