Cenvat credit

[murali krishna]

Whether an assessee is eligible for Cenvat Credit on imported Capital goods for 50% or 100%

AI Summary

Eligibility for Cenvat Credit on Imported Capital Goods: 50% Rule vs. 100% for 4% CVD under Section 3(5) An inquiry was made about the eligibility for Cenvat Credit on imported capital goods, specifically whether it can be claimed at 50% or 100%. One response clarified that 50% credit can be claimed in the current financial year and the remaining 50% in the subsequent year, applicable only to CVD. Another response added that 4% CVD under Section 3(5) of the Customs Tariff Act can be claimed at 100%, while other CVD under Section 3(1) follows the 50% rule. The final response agreed with the previous explanations.