Eligilble cenvat credit on purchases from eou unit

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srinivas (Querist)

06 February 2013 Dear Sir

Request for clarification with respect of Cenvat credit eligible when purchase from EOU Unit -
Please clarify with an example :
Now since, there is no cess on CVD on imports and EOU is required to charge ED on its sales equivalent to imports, whether credit of Education Cess and SH Education cess is eligible to DTA Unit.
regards,

Arun Kumar Singh

Arun Kumar Singh (Expert)

11 February 2013 If EOU will charge the edu. cess and SH cess on excise duty then you can avail the cenvat credit. On imported goods edu. cess and HS cess is not applicable from April 2012.

srinivas

srinivas (Querist)

12 February 2013 Dear Sir
An EOU is charging as below: Bill date is 31-Jan-2013:
Total Sales Value = 55,664/-
customs duty @ 10 % = 5,566/-
CVD @ 12 % = 7,348/-
Cess @ 3 % = 387/-
{ Cess calculated on customs
duty + CVD }
Total duty = 13,301/-
& again Cess @ 3 % on total
duty is chaged = 399/-
In such case, which credit is eligible ?only CVD or CVD + 3 % cess mentioned first above ? If so, 3 % cess on CVD is not tallying as it is charged including customs duty - whether it is eligible or not ?
If EOU purchases are treated as imports then as replied we may not eligible to take CESS credit - this is correct ?
Kindly guide: Thanks in advance.

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