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

CENVAT Credit restoration: removal of cap on additional customs duty credit for vessels, restoring full credit retrospectively.
The notification omits the proviso to rule 3(1)(vii) of the CENVAT Credit Rules, removing the prior restriction on claiming CENVAT Credit for Additional Duty of Customs on ships, boats and floating structures and restoring entitlement to take full credit of that additional duty with retrospective effect from 1 March 2015; the change is about the capped availment mechanism and not a general disallowance of CVD credit.