Excise Duty Credit Taken for Additional Duty.

[Guest]

Dear sir

We are import raw mateial and use to production and cenvat credit taken of our CENVAT ACCOUNT we are taken cenvat credit on Bill of Entry ,cvd and additional duty 4% .

we sale finshied goods to local market ,we have to pay excise duty for home consumption ,can we use addiitional duty credit balance in our cenvat accounts ,

If yes please provide me notification or circular

Thanks

Gorakhnath kharade
9920200983

[Ganeshan Kalyani]

Refer Rule 3 of Cenvat Credit Rules, 2004.

[KASTURI SETHI]

Only CVD is permitted.

AI Summary

Cenvat credit on countervailing duty permitted; additional duty credit not eligible for use in excise adjustment. Query whether CENVAT credit taken on import duties can be used to pay excise on cleared goods; respondents state that only countervailing duty credit is allowable for utilisation against excise liability, and credit for the separately charged additional duty is not permissible under the CENVAT mechanism.