TaxTMI 
TaxTMI 
Is 100% Cenvat Credit of AED Paid @4% on imported capital goods allowed in the first year? If yes, under which provision?
Can the experts put some light on the issue which is being raised under the EA 2k Audit now underway from FY 2015-16 onwards?
Cnevat of AED paid on Capital Goods
24 Mar 2021 
18 Replies 
3746 Views Asked by
Cenvat credit for additional customs duty on imported capital goods may be claimed immediately, allowing full credit in the first year.
Full CENVAT credit of the additional duty charged under the Customs Tariff in respect of imported capital goods is allowed immediately on receipt in the manufacturer's factory under the proviso to the Cenvat Credit Rules; this additional duty is excluded from the percentage restriction applicable to other inputs and its credit may only be used for excise-related liabilities within the Cenvat regime. (AI Summary)
Full CENVAT credit of the additional duty charged under the Customs Tariff in respect of imported capital goods is allowed immediately on receipt in the manufacturer's factory under the proviso to the Cenvat Credit Rules; this additional duty is excluded from the percentage restriction applicable to other inputs and its credit may only be used for excise-related liabilities within the Cenvat regime. (AI Summary)