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Additional duty on Imports (4%) is eligible to take Cenvat

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Dear Sirs,

We are Manufactures & Exporters, while importing some raw  materials,capital items 4% SAD of 19/2006 is attracting. We are taking it (4%) as Cenvat Credit.

But our Range officers are giving S.C.N's in this regard.

Please clarify additional duty on imports (4%) is rightly eligible to take cenvat credit or not? why?

Replies (2)

Rule 3(vii) of the cenvat credit rule entitle you to take cenvat credit on the duty paid under SAD.

Hi,  Prabhat Sir, Thank u sir for your reply,

However, we are adjusting all customs duties and 4% SAD under Target +, DEPB etc.,  and availing the same as Cenvat Credit. In this connection the CE Dept issuing SCN's. Please clarify ? whether we are eligible for the same or not?


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