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

Cenvat credit on import duty: traders must pass duty to buyers; manufacturers may claim staged credit under rules.
If the importer is a trader, CVD on imported machinery may be passed on to the buyer with appropriate entries; if the importer is a manufacturer, Cenvat credit of the CVD may be availed under the Cenvat framework in a phased manner and Special Additional Duty treatment must be observed, and on clearance the manufacturer must comply with the applicable Cenvat rule requirements for availment, reversal and record keeping.