Cenvat credit on CVD paid at conncessional rate by Not. no. 56/2011- CUS admissible or not

[manish kumar]

Dear Sir, An assessee import Steam coal from Indonesia by virtue of Notification no. 46/2011-Cus and 12/2012-Cus and pay additional custom duty @ 2%. Now, They take Cenvat credit on such items. Whether it is admissible or not in view of Cenvat credit rule 2004. Please clarify this issue with proper notification/rule. Thanks

[KASTURI SETHI]

Yes admissible. Read this circular especially para no.4 & 5.

Steam Coal imported from Indonesia under FTA Notification No. 46/2011-Cus. importer can avail concessional CVD under Notification No. 12/2012-Cus. simultaneously

Circular No. 41/2013-Cus., dated 21-10-2013

[Ganeshan Kalyani]

Yes, credit of addition duty is eligible in view of the Notification reproduced by Sri Kasturi Sir.

AI Summary

Cenvat credit on concessional countervailing duty admissible where additional duty is paid under notification-based import concessions.
Cenvat credit is admissible on additional countervailing duty paid at a concessional rate on imported steam coal where the import enjoys notification-based concessional treatment; departmental circular guidance confirms that the concessional additional duty paid under such notifications qualifies for credit under the Cenvat Credit Rules.