Cenvat credit on goods cleared

[kiran kujur]

what will be cenvat credit on goods cleared from 100% Eou/STP/EPZ before 9.9.09.pl provide details ofBED,E.Cess.,H.E.Cess separately

[Surender Gupta]

The date of amendment to rule 3 of the cenvat credit rules 2004 is 7-9-2009 regarding cenvat credit to EOU/STP/SEZ. The provisions applicable before 7-9-2009 read as under: "{X multiplied by [(1+BCD/200) multiplied by (CVD/100)].}

[RadheyShyam Mangal]

In case of goods sold by EOU in DTA under Condition No. 2 of Ntfn. NO. 23/2003 CE, the cenvat available to the buyer is as per rule 3(7) (a) of CCR, 2004. There are tribunal decisions holding that education cess, Higher educaion cess is available in full for cenvat credit by the DTA purchaser. However the matter was arguable before the amendment in CCR, 2004 on 09.09.09. In my opinion the buyer is eligible for credit of EC, HEC even before 09.09.09.

AI Summary

Cenvat Credit Applicability Clarified for EOUs, STPs, and EPZs Pre-2009; Education Cess Eligible for DTA Purchasers. A query was raised about the applicability of Cenvat credit on goods cleared from 100% Export Oriented Units (EOU), Software Technology Parks (STP), or Export Processing Zones (EPZ) before September 9, 2009. One response highlighted that the amendment to Rule 3 of the Cenvat Credit Rules, 2004, occurred on September 7, 2009, affecting credit calculations. Another response noted that, according to tribunal decisions, education cess and higher education cess were fully available for Cenvat credit to Domestic Tariff Area (DTA) purchasers, even before the amendment, under Notification No. 23/2003 CE and Rule 3(7)(a) of CCR, 2004.