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 .

AI Summary

Dispute Over Cess Applicability on Customs Duties: Should It Include Countervailing Duty? Clarification Sought Under CENVAT Credit Rules, 2004. A query was raised regarding the applicability of cess on customs duties, specifically whether it should be charged on the basic duty only or also on the Countervailing Duty (CVD). The customs department has been charging cess on both, contrary to explanatory notes which suggest it should apply only to basic duty. The excise department does not allow CENVAT credit on cess charged on CVD. A respondent clarified that under CENVAT Credit Rules, 2004, credit is available for certain specified duties and cesses, but not for others, and noted that education cess and secondary education cess have not been levied since March 2015.