Cenvat credit on goods manufactured by 100% EOU

[Ankur Simghal]

Q: Lets take X Ltd is a 100 percent EOU. Y ltd is a normal company. Y ltd. purchased goods from X Ltd on 15/09/2013.

the bill contains excise duty as under taking hypothetical figures:

 

Basic Custom Duty(BCD)   = Rs. 5000

CounterVreilly Duty(CVD)   = Rs 2000

EC + SHEC + Spl. CVD.     = Rs.500

Now the ques is will Y Ltd get the Credit Of Rs. 7500 ???

Reply with proper supporting

[Madhukar N Hiregange]

ONLY cvd 2000 + sad + ed+ cess other than customs part is eligible. No credit on customs duty + cess on same.

[Mahir S]

Credit of only CVD and Addl. duty is available.

Credit on Edu.cess and Sec. Edu. Edu. Cess not available, It was permissible in the past.

AI Summary

Cenvat credit limited to countervailing duty and excise duties; no credit for basic customs duty or cess.
Cenvat credit for goods purchased from a 100% EOU is confined to countervailing duty and additional excise duties; basic customs duty and cess components that are part of customs are not eligible. Previously permitted credits such as education cess and secondary education cess are no longer available.