MEGA POWER PROJECT-CVD EXEMPTION

[swati rastogi]

Hi,

i am handling a mega power project , in case of mega power project against ICB , the custom duty is exempt as well as excise duty.

but the custom duty is exempt only in case CIF content is available in the project.

now in my project the CIF content is not available, so full custom duty will be levied.now my question is whether the CVD will also be applicable at full rate or since excise duty is exempt for Indian vendors for this project so CVD will also be applicable with nil rate

Thanks & regards

Swati

[MUKUND THAKKAR]

In connection of  above so far is excise duty exemption, please refer the following notifications along with the circular.

Notification no 12/2012 dt 17.03.2012,  Notification no 34/2012 dt 10.09.2012, and circular no 963/06/2012-cx dt 29.03.12.

Regards

Mukund Thakkar

[ajay rana]

Basically CVD is equal to Excise. Therefor, it should also be exempted, if CVD exempted. 

AI Summary

CVD applicability: CVD should mirror excise duty exemption and be not leviable where excise is exempt for domestic suppliers. Whether CVD is payable on imported inputs for a mega power project procured through international competitive bidding when excise duty is exempt for domestic suppliers; the project grants customs duty exemption only when CIF content conditions are met, but where CIF is absent full customs duty applies. Replies cite notifications and a circular and state that, because CVD corresponds to excise, CVD should be exempt where excise exemption for Indian vendors applies.