CENVAT CREDIT

[SRINIVASA N]

Good Morning.

 

Iam working in a Public sector enterprise under Ministry of Railways. My orgainsation is executing Railway construction projects being alloted by Ministry of Railways. In one of the ADB funded project we are giving custom duty and excise duty exemptions certificates (Project Authority certificates) duly taking approval from Railway authorities for the material being purchased by one our contractor through his vendors in the name of vendors. Recently, contractor has submitted an application for custom duty exemption for imported un finished copper Rod in the name of his vendor. The vendor in turn will process the copper rod in to a finished product and will again seek excise duty exemption certificate from my organisation. 

 

My query whether we can give custom duty exemption as well as excise duty exemption on the same vendor of my contractor for the same basic material i.e., copper.

 

In such case, is there any CENVAT credit that can be claimed by my organisation.

 

CD Exemptions are based on MOF notification Nos. 84/97, 119/99, 85/99

 

ED exemptions are based on MOF notification No. 108/95,7/98,33/98,4/99,40/99,36/2001,13/2008.

 

Regards,

 

N Srinivasa Rao

[Rama Krishana]

As long as the conditions of the related notification is satisfied, the answer is yes; i.e. you can give certificate to the for intended use in the prescribed manner wherever is applicable.

Further, when you would received the goods without payment of customs duty or excise duty under exemption scheme  as above, where is the question of cenvat credit arises? Therefore either the facts or the query is incomplete.

AI Summary

Duty exemption certificates may both be issued if conditions are met; CENVAT credit is inapplicable for duty free goods. The procuring authority may issue customs and excise duty exemption certificates to a vendor for intended use if the transaction satisfies the conditions of the relevant exemption notifications; where goods are received duty free under an exemption scheme, CENVAT credit is not available because no duty has been paid that would give rise to a credit entitlement.