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TMI BlogAvailment of Cenvat creditX X X X Extracts X X X X X X X X Extracts X X X X ..... Availment of Cenvat credit X X X X Extracts X X X X X X X X Extracts X X X X ..... company[100%EOU]and took cenvat credit of CVD [BED-14%]and Education Cess and SHE Cess. But some of the manufacturers say that X company can avail Cenvat credit as per the formula mentioned in Rule 3( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7) of the Cenvat Credit Rules i.e X multiplied by [(1+BCD/400) Multiplied by (CVD/100)] and no credit on Education cess or SHE cess is allowed as Cenvat credit eventhough the 100% EOU has paid the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. I request the members of the forum to give their opinion on this matter. Reply By Surender Gupta: The Reply: The formula given in the rule 3(7) is in line with exemption notifications and applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to basic excise duty only. Therefore despite the fact that there is no reference to education cess in the rule 3(7), X can avail the credit of education cess paid by Y (an EOU), and moreover, with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out applying any formula. Reply By R.S. Mangal: The Reply: the credit is to be taken as per the formula mentioned in Rule 3(7) of the Cenvat Credit Rules. however there are tribunal decisions holdin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that credit of EC and HEC can be taken in full. X X X X Extracts X X X X X X X X Extracts X X X X
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