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

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.