CENVAT Credit on Imported goods ... reply soon

Case 1: Cenvat credit of CVD paid under 3(1) is availlable and corresponding Edu cess and SAH Cess. Assesse needs to be registered with central excise. However since your client here is not manufacturer, he can only pass on the credit to another person who can use it to pay duty on final product/output services.

Case 2: Cenvat credit of CVD paid under 3(1) is availlable and corresponding Edu cess and SAH Cess. Assesse needs to be registered with central excise. He can use it to pay duty on final product/output services.

Case 3: In this case also, Cenvat credit of CVD paid under 3(1) is availlable and corresponding Edu cess and SAH Cess. Assesse needs to be registered with central excise. He can use it to pay duty on final product/output services.

In the first case, you are importing the goods from your parent company abroad and selling them to local customers. In such  a case, you are acting as a trader. Then  you have to get registered as a Dealer under Central Excise. Then only you can pass on the credit to the customers.

In the second case, you are acting as a manufacturer. In such a case, you should get registered as a manufacturer. Get the imported inputs, complete the manufacturing activity, avail the credit on the inputs and clear the goods on payment of duty on the value addition after availing the set-off the input credit.

In the third case, you are sending the inputs to the job worer. Two situations arises here, one is sending the inputs to the job worker, processing to them to the semifinished stage and get back them to your premises and completing the remaining process and clearing them on payment of duty. In the second case, you can ask the job worker to manufacture the goods completely and clear them on payment of duty from his premises. While the former needs no permission, the later needs the permission from the JAC in terms of Rule 4(6) of Cenvat credit rules,2004.

As regards to the availment of credit, on all the imported inputs, you can take the cenvat credit of CVD, CVD EC and CVD secondary cess, 4% SAD ( Special additional duty of customs).

hi pls clarify my doubt

we are a trader .whether we can avail refund of CVD & BCD on goods imported

If you are exporting then ONLY you can get the refund

I have a similiar situation/predicament. We are registered as dealers in excise. We import goods, pay 10%CVD, 4% SAD and sell to manufacturers (excisable invoice).  But we are able to pass only CVD (as excise duty) and not SAD, as we have to charge VAT which we have to pay to sales tax dept.

Eg: Import CIF:100/-......CVD paid:10/-......SAD paid:4/-(approx).

Excise invoice:100+10(excise duty)+4(VAT)=114/-. Now this VAT is collected and paid to sales tax. We only passed Rs.10(as excise) out of Rs.14 paid to customs. We Or am I making a mistake in invoicing?

I am having a tough time solving this. Any information/help appreciated.

dealers are not eligible to claim /pass SAD, this facility goes to manufacturer importer only. 

So the importer dealers are at a disadvantageous position and there is cascading tax as we are paying both SAD and local VAT/CST?

local vat / cst is same for both manufacturer / dealer as the manufacturer does not have to resale it, its non existance instance unless its processed/ manufactured, but the trader has to ........

regarding Special Additional Duty, the same can be claimed by direct manufacturer - importer only, 

Cenvat Credit is a facility given to the manufacturer to save him from the cascading effect of Indirect Taxation. It can be availed only when the product you import is an input for the final product and the process you do amounts to manufacture. So, in situation 1, No question of Cenvat Credit. In Situation 2 and 3, it can be availed if the process amount to manufacture and the goods imported is an input to the final product. 

You can choose 2 or 3,  that the both come under manufacturing activity.  You can claim CVD E.CEss and AED.

Hi,

Cenvat Credit on CVD + SAD on imported goods

We are importer finished goods on MRP & selling after market to dealer without any processing.

also dealer dosent have excise registration.

my question is can we take credit on CVD + SAD on import goods?

Pls reply me.

Can a manufacturer avail the credit of CVD 3(1) if it purchases from importer trader. since importer is not a manufacturer, can he pass on the credit of cvd to us...?

Can anyone kindly explain what is expected to happen in the same case once GST comes into picture?

As input tax credit will be offered irrespective of the 3 scenarios, won't it dis-incentivise localised manufacturing?