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.

AI Summary

Eligibility to Claim Cenvat Credit on Additional Customs Duty for Expanding Paper Industry Unit Confirmed; 100% Credit Possible A query was raised regarding the eligibility to claim Cenvat credit on additional customs duty paid for importing plant and machinery to expand an existing paper industry unit. Two responses confirmed that the credit can be claimed. The first response clarified that the credit can be used to offset excise duty payments, assuming the new plant is an extension of the existing one. The second response stated that 100% Cenvat credit of the Special Additional Duty (SAD) can be availed in the first year of using the capital goods.