Cenvat credit rules under excise act

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Sir,

We are importing rawmaterials from china for manufacturing.  Import duty contains 3 parts customs and its cess7.5%, CVD and its Cess 12.36% and Addl. Import Duty 4%. While Submitting ER1 the excise authority says that we can avail cenvat for 4% and not for CVD.  But one of our Friend says that Cenvat may be taken for CVD as well as Addl Import Duty.

We are also propose to import Capital equipment from China.  If the above is applicable for capital items also.

Please clarify me on this sir.

Thanks and Regars,

Priya

 

Replies (2)
Originally posted by : R.Priya

Sir,

We are importing rawmaterials from china for manufacturing.  Import duty contains 3 parts customs and its cess7.5%, CVD and its Cess 12.36% and Addl. Import Duty 4%. While Submitting ER1 the excise authority says that we can avail cenvat for 4% and not for CVD.  But one of our Friend says that Cenvat may be taken for CVD as well as Addl Import Duty.

We are also propose to import Capital equipment from China.  If the above is applicable for capital items also.

Please clarify me on this sir.

Thanks and Regars,

Priya

 

 

Rule 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);

(via)

the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of 2007); 

(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) (vi) and (via); 

(viia)

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

Provided that a provider of taxable service shall not be eligible to take credit of such additional duty;

(viii)

the additional duty of excise leviable under section 157 of the Finance Act, 2003 (32 of 2003);

(ix)

the service tax leviable under section 66 of the Finance Act; 

(x)

the Education Cess on taxable services leviable under section 91 read with section 95 of the Finance (No.2) Act, 2004 (23 of 2004); and

(xa)

the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007); and

(xi)

the additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005 ) 

Provided that the CENVAT credit shall be allowed to be taken of the amount equal to central excise duty paid on the capital goods at the time of debonding of the unit in terms of the para 8 of notification No. 22/2003-Central Excise, published in the Gazette of India, part II, Section 3,sub-section(i),vide number G.S.R. 265(E), dated, the 31st March,2003.
paid on- 

(i)

any input or capital goods received in the factory of manufacture of final product or premises of the provider of output service on or after the 10th day of September, 2004; and

(ii)

any input service received by the manufacturer of final product or by the provider of output services 
on or after the 10th day of September, 2004,

 

 

 

https://www.cbec.gov.in/excise/cxrules/new-cenvat-rules.htm

Manufacturer can take cenvat credit on the part of CVD and SAD.


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