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

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.