Cess on custom

[ashok Bohra]

Dear sir,

kindly inform duty on which cess on custom is chargeable

From last several years to till date custom department is charging custom cess on basic duty and on cvd , where as explanatory note on custom clarify that custom cess is applicable on basic duty only not on cvd. And excise department is not agree to give centvat on such cess charged on cvd .

[Rajagopalan Ranganathan]

Sir,

Under CENVAT Credit Rules, 2004 credit is allowed only in respect of -

(i) the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act;

Provided that CENVAT credit of such duty of excise shall not be allowed to be taken when paid on any goods -

(a) in respect of which the benefit of an exemption under notification No.1/2011-CE, dated the 1^st March, 2011 is availed; or

(b) specified in serial numbers 67 and 128 in respect of which the benefit of an exemption under Notification No. 12/2012-CE,dated the 17^th March, 2012 is availed;]

(ii) the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise Act;

(iii) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 ( 40 of 1978);

(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 ( 58 of 1957)

(v) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001);

(vi) the Education Cess on excisable goods leviable under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004);

(via) the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of 2007);

^[3] (vii) the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified under clauses (i), (ii), (iii), (iv), (v) , (vi) and (via).

Except the above mentioned cess in respect of any other cess paid credit is not available under CENVAT Credit Rules, 2004.

[Rajagopalan Ranganathan]

Sir,

In continuation of my reply Education cess and Secondary and Higher Education cess are not leviable from 13.2015.

AI Summary

Cenvat credit scope limited to specified duties and cesses; unlisted customs cesses on CVD are not creditable. Credit under the CENVAT Credit Rules is available only for duties and cesses specifically enumerated by the Rules - including specified excise duties, additional duties under specified Acts, National Calamity Contingent Duty, Education Cess and Secondary and Higher Education Cess, and an additional duty under the Customs Tariff Act equivalent to those excise duties - and cesses not so listed are not eligible for CENVAT credit; consequently a customs cess charged on CVD is not creditable unless it falls within the enumerated categories.