CENVAT CREDIT

[Gopalarathnam Muralidharan]

1) A Company which has got excise registration as a manufacturer as well as dealer imports machinery and sell it as such

2) Now the question is whether the company can set off the CVD on excise payable or  CVD Credit has to be passed on to the buyer of machinery

 

AI Summary

Can a Company Pass CVD Credit to Machinery Buyers or Claim CENVAT Credit? Clarifying Importer Roles and Duties. A company with excise registration as both a manufacturer and dealer imports machinery for resale. The query is whether the company can offset the Countervailing Duty (CVD) against excise payable or must pass the CVD credit to the machinery buyer. The response clarifies that if the machinery is imported as a trader, the excise (CVD) can be passed to the buyer after recording it in the RG 23D register. If imported as a manufacturer, the company can claim 50% CENVAT credit on CVD initially and the remaining in the next financial year, in compliance with CENVAT rules.