CENVAT Credit on CVD - Imports

[Ganeshan Kalyani]

Dear Experts,

With reference to Notification No. 1/2016-Central Excise (N.T.) dated 01.02.2016, the CENVAT Credit on CVD - Counter vailing duty has been omitted, retrospectively with effect from 1st of March, 2015. I wanted to discuss why this amendment has been made retrospectively while any other tax amendment has been proposed prospectively, Even respected Modi Government talked about prospective change. What will be the impact on those assesses who has taken set-off on CVD. Clarification is expected in this regard. Dear Experts please share your views in this regard.

AI Summary

Retrospective Amendment in Notification No. 1/2016-Central Excise Restores Full CENVAT Credit on CVD for Ships and Boats A discussion was initiated regarding the retrospective amendment in Notification No. 1/2016-Central Excise (N.T.), which omitted the provision limiting CENVAT Credit on the Countervailing Duty (CVD) for imports. The amendment, effective from March 1, 2015, allows full credit on additional customs duty for ships and boats, reversing a prior restriction. Participants debated the retrospective nature of this amendment, with some suggesting it should have been effective from March 1, 2011, when the restriction was first imposed. The consensus was that the amendment benefits the industry by restoring a previously removed right.