LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Cenvat Credit on Import Duty

chetan soni (service) (3784 Points)

22 June 2009

We have manufacturing concern as our client. In last year accounts we have taken 50% of Basic Custom Duty as Cenvat Credit, but this was not there in Cenvat Register.

And balance 50% was carried forward to this F.Y.

My Qyestion:

Can we take cenvat credit of Basic Custom Duty against excise duty payable.

Reply
Follow
Share

8 Replies

CA. Rashi Goyal (Chartered Accountant) (512 Points)
Replied 22 June 2009

Yes cenvat credit of basic customs duty can be taken against excise duty payable.

1 Like

chetan soni (service) (3784 Points)
Replied 24 June 2009

Can you provide me the any circular/notification pr any other documentary proof for that.

Pavan Jain S (Chartered Accountant) (1575 Points)
Replied 24 June 2009

An assesse is not entitled to claim cenvat credit of basic customs duty. It is only duties u/s 3(1), 3(3) or 3(5) of Customs tariff Act which can be claimed as credit

2 Like

CA. Rashi Goyal (Chartered Accountant) (512 Points)
Replied 24 June 2009

Mr. Pawan is right, yes cenvat ceredit is not available on basic customs duty.

1 Like

CA. Shwetank Vats (Chartered Accountant) (653 Points)
Replied 28 June 2009

Cenvat Credit taken on the following 4 items only :-

1.CVD

2.Edu. Cess on CVD

3.Hr.Edu.Cess on CVD

and 4. Additinal Duty (in lieu of Sales Tax) @ 4%

Cenvat credit never allow on Custom Duty and Edu. Cess and Hr. Edu. Cess thereon

chetan soni (service) (3784 Points)
Replied 29 June 2009

Thanks for the speedy reply.

CHANDRA PRAKASH SHARMA (G.M. FINANCE) (21 Points)
Replied 24 February 2010

shanthi (-) (102 Points)
Replied 21 February 2017

Dear Sir,

As per the CENVAT credit rules Assesse is eligible to take CENVAT as follows:

(1) A manufacturer or producer of final products or a 28[provider of output 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;

19[Provided that CENVAT credit of such duty of excise shall not be allowed to be taken when paid on any goods -

(a) in respect of which the benefit of an exemption under notification No.1/2011-CE, dated the 1stMarch, 2011 is availed; or

(b) specified in serial numbers 67 and 128 in respect of which the benefit of an exemption under Notification No. 12/2012-CE,dated the 17th March, 2012 is availed;]

(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);

[1,2](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);

[3] (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);

40[*********]

(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; and

29[(ixa) the service tax leviable under section 66Aof the Finance Act; and].

30[(ixb) the service tax leviable under section 66B 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),

[4] (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)

paid on-

(i) any input or capital goods received in the factory of manufacture of final product or 31[by] 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,

As per the said rules CENVAT credit is not available on Basic Customs Duty. However, CENVAT credit can be taken on CVD and SPL CVD.