how to credited import duty ?

[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.

AI Summary

Cenvat Credit Claim on Import Duties Revised: Education and SHE Cess Exempt from Customs Duty Post-2012 Amendment. A query was raised regarding the correct practice for claiming Cenvat credit on import duties, specifically on CVD, Education Cess, SHE Cess, and Additional Duty. The discussion revealed that the calculation of customs duty was amended in 2012, eliminating the Education Cess and SHE Cess on CVD from customs duty calculations. According to a notification from March 2012, these cesses are exempt from the customs duty calculation, meaning the practice of claiming Cenvat credit on these components is no longer applicable.