TaxTMI 
TaxTMI 
Cenvat credit
13 Nov 2010 
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Cenvat credit on imported capital goods: certain CVD heads available immediately, others require phased claim.
Cenvat credit on imported capital goods is available for the Countervailing Duty component, but treatment depends on the CVD classification: certain CVD heads may be taken in full in the year of import, while other CVD heads must be claimed in a phased manner across the current and a subsequent year. Only the CVD element is addressed, and taxpayers must verify capital-goods eligibility conditions under the cenvat rules before availing credit. (AI Summary)
Cenvat credit on imported capital goods is available for the Countervailing Duty component, but treatment depends on the CVD classification: certain CVD heads may be taken in full in the year of import, while other CVD heads must be claimed in a phased manner across the current and a subsequent year. Only the CVD element is addressed, and taxpayers must verify capital-goods eligibility conditions under the cenvat rules before availing credit. (AI Summary)
Whether an assessee is eligible for Cenvat Credit on imported Capital goods for 50% or 100%