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 entitlement on supplies from export-oriented units affirmed, including education and higher education cess credit for DTA buyers.
Cenvat credit on goods cleared by export-oriented units for sale into the domestic tariff area was governed by pre-amendment provisions of the Cenvat Credit Rules allowing purchaser entitlement under the sale condition in the governing notification. Tribunal decisions under the pre-amendment regime held that education cess and higher education cess were available in full as cenvat credit to the DTA buyer, and commentators concluded that the purchaser could claim those cesses even before the subsequent regulatory amendment.