regarding cvd credit taken

[Guest]

res. sir,

we are manufacturer of dutiable goods for that requirement of raw material we also import and we are paying custom duty by cheque or by using licence then we can take credit of cvd and additional duty.

so my question is that can we take credit of cvd which was paid by licence.?

or we can only the credit of cvd only which was paid by cash or by cheque.?

pls. give any appropriate guidence ..

regards,

manan pandya

[YAGAY andSUN]

Dear Manan,

Please specify, which licenses are being used by your Organization for clearance of goods from the Customs Department.

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Guest]

res. sir,

we are using licence of FPS and FMS for making payment of custom duty so after that shall we liable to take cvd.

regards,

manan pandya

[PAWAN KUMAR]

Dear Sir,

You can take cenvat credit of CVD and Additional Duty (SAD) debited into the FPS/FMS License. Please read para 3.17.6 of FTP 2009-2014.

[YAGAY andSUN]

Dear Manan,

CENVAT credit is allowed vide Para 3.17.6 of the FTP 2009-2014 as amended from time to time on FPS and FMS.

Additional customs duty/excise duty paid in cash or through debit under Duty Credit Scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules, except under SFIS.

Please also check point no. 2(v) of the Circular No. 20 /2012-Cus dtd 27^th July, 2012.

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Cenvat credit eligibility: CVD and SAD debited to FPS/FMS licences qualify for input credit, subject to revenue rules. CENVAT credit is available for CVD and SAD debited to FPS/FMS licences, permitting manufacturers to treat such debits as eligible input tax credit under the CENVAT framework; adjustments of additional customs/excise duties paid in cash or via Duty Credit Scrips are to be processed as CENVAT credit or under the drawback mechanism per applicable revenue rules, subject to programme-specific exclusions such as SFIS.