TaxTMI 
TaxTMI 
TaxTMI 
Cenvat Credit
murali krishna
Sir, My question is on Imported Capital Gooods Special Additional duty 4%, how much credit is eligible 50 percent or 100 percent ?
100% Cenvat Credit Available for 4% SAD on Imported Capital Goods Under Section 3(5) of Customs Tariff Act A query was raised regarding the eligibility of Cenvat Credit on the Special Additional Duty (SAD) of 4% for imported capital goods, questioning whether 50% or 100% credit is permissible. Two responses clarified that 100% Cenvat Credit is available for SAD as it is duty on duty. The replies referenced the Cenvat Credit Rules, 2004, explaining that the credit for additional duty under Section 3(5) of the Customs Tariff Act is fully admissible upon receipt of the capital goods in the manufacturer's factory. (AI Summary)