Availment of cenvat of CVD

[madhavvan n]

a company has taken a trading licenec under excise it stores the imported goods for trading at its premises and then sells the same to local parties is it required to clear goods on payment of excise duty can it avail cenvat of cvd is it required to file any returns

[Madhukar N Hiregange]

Yes the addtional duty of customs (CVD) as if paying SAD ( 4%) can be passed onto the cusotmers as a registered dealer. Returns have to be filed every quarter.

In case of trading of goods, under central excise you need to register as importer / first state / second stage dealer. Which you have done. Now as a dealer, you can not pay duty of excise and take cenvat credit. You can pass on the duty to the buyer in proportion to the quantities as you have paid the cvd at the time of import.

AI Summary

Cenvat credit of CVD unavailable to trading dealers; CVD can be passed to buyers and quarterly returns required.
Trading dealers who import and resell goods cannot claim CENVAT credit of the additional duty of customs (CVD); the CVD paid at import is not creditable as excise and may be passed on to buyers in the sale price. Registered dealers must maintain required registration and file periodic returns, typically quarterly.