Eligibilit of cenvat credit, Central Excise

[MANOHARAN ARUMUGAM]

For imported inputs we are paying CVD & SAD etc. under incentive scrips i.e. FMS/FPS/MLFPS. Whether these duties are eligible for cenvat credit? Please clarify with cases laws, if any.

These scrips are issued under Chapter - III of Foreign Trade Policy.

A.Manoharan

Posts / Replies

[CS SANJAY MALHOTRA]

Dear Manoharan,

Duty (CVD & SAD) paid from Duty Credit Scrips are eligible for CENVAT Credit. Please refer Central Excise Notifications No. 29/2012 & 30/2012 dated 09.07.2012 (Clause 2j)

Hope above clarifies your concern.

[BHIMIREDDY NAGARAMI REDDY]

You are eligible for credit as per as per condition vi of the Customs Notifications No. 92/2009(FPS) and 93/2009(FMS). However, if you are a service provider, you are not allowed 4% CVD under levied Section 3(5) of the Customs Tariff Act..

If the goods are sourced indigenously, but not imported, cenvat credit is eligible as per Central Excise Notifications as rightly mentioned by Shri Sanjay Malhotraji.

[CS SANJAY MALHOTRA]

Dear Mr.Manoharan,

Additions made by Mr. Reddy is correct in response to my submissions which pertains to domestic supplies only.

Thanks Mr. Reddy.