AVAILMENT OF CENVAT CREDIT OF CUSTOM DUTY

[Asked by Guest]

Dear all

We are manufacturer. We procure capital goods through import. In bill of entry there is Custom duty @5%, CVD @ 12%, Custom cess @2%, Custom SHE Cess@1% and Addl. Duty @4%. From this duties We avail Cenvat on CVD @12% and Addl. Duty @4% my query is: Can we avail Cenvat credit on CVD portion in Custom Cess (2%) and SHE Cess (1%). Please express your views. (kindly clear about payment of Custom duty @5%)

rgds

AI Summary

Cenvat credit of education and SHE cess: availment on CVD allowed subject to statutory exemption and specified exclusions.
The document addresses whether Cenvat credit may be availed on education cess and secondary and higher education cess charged on CVD for imported capital goods. It records an initial position denying such credit, a contemporaneous claim that budget changes permit credit on cess components of CVD, and cites a notification effective 17 March 2012 exempting education and SHE cess payable on CVD while listing specific tariff headings and items excluded from that exemption.