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

AI Summary

Railway Project Vendor Eligible for Dual Customs and Excise Duty Exemptions on Copper Rods if Conditions Met A public sector enterprise under the Ministry of Railways is executing a railway construction project and is issuing customs and excise duty exemption certificates for materials purchased by a contractor's vendor. The query is whether both exemptions can be granted for the same vendor on copper rods. The response clarifies that if the conditions of the relevant notifications are met, both exemptions can be issued. However, since the goods are received without duty payment under the exemption scheme, the question of CENVAT credit does not arise, suggesting the query might be incomplete.