Pass on CVD

[Rudrayani Shedjale]

Hello

we have received an excise gate pass (as well the tax invoice) from one of our supplier.

He has imported those goods & sold us.

For our reference he has also sent us bill of entry. from that we understood he has pass on CVD,custom edu.cess,customs sec & higher edu.cess, additional duty (imports).

is it correct to pass on import duty from our 1st stage dealer?

also currently Cess on excise are not in operation. but he has pass on cess on customs.

can we take set off of the same as BED??

please advise.

[MUKUND THAKKAR]

You can not avail the cvd cerdit bill of entry given by your supplier. if seprate amount details are mention in invoice like CVD, AED than you can avail the credit. amount of cess is not eligable for credit.

[Rudrayani Shedjale]

Sir

he has mentioned on excise gate pass as BED, Cess,S.H.E.C. & ACD @ 4%

he is saying bill of entry he has sent us only for information purpose.

please advise what is correct to do?

[MUKUND THAKKAR]

please take cenvat cerdit of Excise duty and AED. on the basis of invoice issued by Dealer.

[Rudrayani Shedjale]

ok. so excise invoice need to get corrected ?

as we can avail the credit of excise & AED only,shall we ask them to send revised invoice by removing Cess?

[KASTURI SETHI]

You should avail cenvat credit of duty for which u are entitled to. Correct cenvat credit is to be taken. You are to ensure that kind of duty, rate of duty and amount of duty on which credit are to be taken are correct. No need to get the invoice corrected or revised just for superfluous Education Cesses mentioned on invoice and paid.

[Rudrayani Shedjale]

ok.sir

thanks a lot.

AI Summary

Cenvat credit entitlement: excise duty and additional customs duty may be credited; cesses remain non creditable.
Cenvat credit is available for excise duty and additional customs duty (CVD) identifiable on supplier documents and invoices; education cesses and customs cesses are not eligible for credit. Recipients must ensure the duty type, rate and amount for which credit is claimed are correct. A revised invoice is not required solely to remove noncreditable cesses when they are superfluously shown.