CVD on Cess is it eligible for CENVAT credit

[Rajan Rajan]

Sir,

CVD on Cess is it eligible for CENVAT credit vide CUS NTF NO. 18/2014 DATE 11/07/2014 for levy of education cess on CVD portion of customs duty leviable on imported IT products.

Similar refer the notification 14 dt. 17^th Mar 2012 exempts all the goods falling within the First Schedule to the Customs Tariff Act, 1975 ( 51 of 1975), when imported into India, from whole of Secondary and Higher Education Cess.

Query : Both Cess charged on CVD is it eligible for CENVAT credit.

[Rajagopalan Ranganathan]

Sir,

In respect of the following goods the exemption contained in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 13/2012-Customs, dated the 17^th March, 2012 is not applicable, namely-

(ii) line telephone sets and line videophones of heading 8517 ;

(iii) goods specified in tariff item 8519 50 00 ;

(iv) all prepared unrecorded media for sound recording or similar recording of other phenomena, other than products of Chapter 37 (excluding cards incorporating a magnetic stripe) of heading 8523 ;

(v) recorded media for reproducing phenomena other than sound or image of heading 8523 ;

(vi) goods specified in headings, sub-headings or tariff items 8531 20,8532, 8533, 8534 00 00, 8541 ;

(vii) parts of electronic integrated circuits and micro-assemblies of tariff item 8523 52 or 8542 90 00 ;

(viii) goods specified in headings, sub-headings or tariff items 8543 70 11, 9013 80 10, 9013 90 10, 9026, 9027 20 00, 9027 30,9027 50, 9027 80(except exposure meters) , 9030 40 00, 9030 82 00;

Therefore education cess and Sand H education cess on CVD portion of Customs duty is leviable on the above mentioned goods. since CVD is eligible for taking credit under CENVAT Credit Rules, 2004, both the cesses payable on CVD are also eligible for credit under CENVAT Credit Rules, 2004.

[DR.MARIAPPAN GOVINDARAJAN]

Thank you for your clarification, Sir,

[Rajan Rajan]

Dear Sir,

Thanks a lot for clarifying the matter.

AI Summary

CENVAT credit eligibility for cesses on countervailing duty affirmed where CVD itself is creditable under CENVAT rules.
Where CVD is eligible for credit under the CENVAT Credit Rules, 2004, the education cess and Secondary and Higher Education Cess charged on the CVD portion of customs duty are also eligible for credit; the exemption notification excluding specified electronic and recording goods means those cesses remain leviable on such goods.