2017 (12) TMI 1885 - AT - Central Excise

Cenvat credit in respect of special additional duty of Customs - denial on the ground that said duty is not excise duty and the said duty was paid by the importer not by the appellant - whether the appellant is entitled for Cenvat credit in respect of special additional duty of Customs paid by the supplier of input and passed on to the appellant? - HELD THAT - The Cenvat credit in respect of SAD is admissible. It does not made any difference whether the SAD of Customs was paid by the importer or otherwise. If the goods is suffering SAD the same can be passed on to the ultimate buyer who is eligible for Cenvat credit on SAD of Customs. There are no reason why the SAD paid by the supplier cannot be allowed as Cenvat credit - the impugned order is set aside - appeal allowed.

Summary

The Appellate Tribunal allowed Cenvat credit for special additional duty of Customs paid by the supplier and passed on to the appellant. The Tribunal held that Cenvat credit is admissible regardless of who paid the duty, as long as the goods are subject to the duty. The impugned order was set aside and the appeal was allowed.