SHIS LICENCE

[pareshbhai vasava]

Dear Sir,

We have purchase material of "Control System- 90328100 Hydrogen Pressure Reducing Station".

"Purchase under SHIS Licence No"

"Removed under Central Excise Notification No:33/2012 CE Dt.09/07/2012 total duty has been debited under license" in remarks invoice.

Can i avail Excise duty 12.50%.

Please give your guidance .

Thanks & Regards

Paresh Vasava

[CSSANJAY MALHOTRA]

Dear,

Yes, you can avail the CENVAT Credit as the SHIS is scrip given by DGFT for payment of Duty on Domestic sourcing of capital goods, spares (10% of Licence value) or against Import of Capital Goods (CVD & SAD Portion only),

Notification No. 33/2012- clearly specify the said provisions.

 

AI Summary

CENVAT credit: SHIS licence scrips permit duty payment on domestic capital goods or import CVD/SAD, enabling credit.
The SHIS licence is a DGFT scrip usable for payment of duty on domestic sourcing of capital goods and spares (spares allocation 10% of licence value) and for import duty components (CVD and SAD). Where duty has been discharged under such a licence pursuant to the controlling notification, the recipient is entitled to avail CENVAT credit in respect of the duty debited under the licence.