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.

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.