Additional Duty

[Madhu Babu Tanguturi]

Additional Duty paid on Import of Plant and Machinery for setting of one more Unit in the exist company (Paper Industry) is eligible to claim as Cenvat credit while paying excise duty on the sales.if possible to claim pleas provide the reference or basis for the same.

[Mahir S]

Yes sir you can avail he cenvat credit of the additional customs duty and also utilize for payment of excise duty.

Here it is presumed that the new plant is also located in the same plant itself and is an extension of the old plant.

[YAGAY andSUN]

Dear Madhu,

You can avail the 100% CENVAT credit of SAD in the very first year of usage of such capital goods.

Regards,

SameerMalhotra- Consultant

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Cenvat credit entitlement for additional customs duty on imported capital goods can be used to discharge excise liability. Entitlement to Cenvat credit of additional customs duty paid on imported plant and machinery used as an extension of an existing manufacturing plant is available and may be utilized for payment of excise liability; the full credit can be availed in the first year of use.