how to credited import duty ?, Central Excise

[sandip shah]

We Import our raw materials and the following  the duties and  Adl. Duty, Edu. Cess & SHE. Cess on CVD, Edu. Cess & SHE. Cess on Cutoms duty are paid by us.

1. Basic Value
2. Customs Duty (BCD)
3. Total of  1+2
4. CVD on Item no.3
5. Edu. Cess on CVD @2%
6. SHE. Cess on CVD @1%
7. Total of item no.2+4+5 + 6
8. Customs Edu. Cess @ 2% on item no.7
9. Customs SHE. Cess @ 1% on item no.7
10. Total of Items 1+2+4+5+6+8+9
11. Adl. Duty @ 4% on item no. 10
12. Total Duty (2+4+5+6+8+9+11)

 

We have been taking Cenvat credit on item no. 4, 5, 6 & 11 i.e. CVD, Edu. Cess & SHE. Cess on CVD and Additional Duty (the prevailing rate is 4%)

This practice is being followed for years together.  Please clarify whether this practice is correct.

Posts / Replies

[Pradeep Khatri]

Concept of customs duty calculation has been amended in 2012.  Point No. 5 & 6 does not exist now.

[R MUTHURAJ]

Yes. You are right, but as pointed out by Mr.Pradeep, 

Vide Notification No. 14/2012 Customs dated 17/03/2012, the Education Cess 2% levied on CVD and the Secondary Higher Education Cess 1% levied on CVD is exempt for the calculation of Customs duty purpose.

From 17/03/2012, the Bills of Entry received will not be charged with the Education Cess 2% levied on CVD and the Secondary Higher Education Cess 1%.